Tech Trade Alert - (PYPL) April 9, 2019

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

Trade Alert - (PYPL) – TAKE PROFITS

SELL the PayPal (PYPL) April 2019 $90-$95 in-the-money vertical BULL CALL spread at $4.97 or best

Closing Trade – For Tech Letter Subscribers Only

4-9-2019

expiration date: April 18, 2019

Portfolio weighting: 10%

Number of Contracts = 23 contracts

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We’ve caught a home run here, capturing 95% of the maximum potential profit at today’s prices. The risk/reward of continuing is no longer favorable, so I am going to cash in. (PYPL) shares have risen virtually every day since we added this position.

Therefore, I am selling the PayPal (PYPL) April 2019 $90-$95 in-the-money vertical BULL CALL spread at $4.97 or best. If you can’t get this price, then run it until the April 18 option expiration when you can.

By coming out here, you get to earn $1,311, or 13.63% in 12 trading days. Well done and on to the next trade.

This was a bet that PayPal (PYPL) would not trade below $95 by the April 18 option expiration in 22 trading days.

If you bought the stock outright, keep it. (PYPL) is going higher.

(PYPL) easily has a double in it over the next three years. It is rapidly gaining market share in the burgeoning Internet cloud at the expense of legacy banks.

I have another six stocks like this that I will be issuing trade alerts for the next time the market gives us a substantial dip.

Here are the specific trades you need to exit this to position.

SELL 23 April 2019 (PYPL) $90 calls at………….….....……$17.40

Buy to cover short 23 April 2019 (PYPL) $95 calls at…….$12.43

Net Cost:………………………….………..………….…..................$4.97

Profit: $4.97 - $4.40 = $0.57

(23 X 100 X $0.57) = $1,311 or 13.63% in 12 trading days.

To see how to enter this trade in your online platform, please look at the order ticket above, which I pulled off of Interactive Brokers.

If you are uncertain on how to execute an options spread, please watch my training video on How to Execute Vertical Call and Put Debit Spreads by clicking here.

You must be logged into your account to view the video.

Please keep in mind that these are ballpark prices only. There is no telling how much the market can move by the time you get this.

Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage. In today's market, investors need every advantage they can get.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you.

The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.

Don't execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile close to expiration.

If you don't get done, don't worry. There are another 250 Trade Alerts coming at you over the coming 12 months.

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