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 – (AAPL) TAKE PROFITS
SELL the Apple (AAPL) September, 2017 $140-$145 in-the-money vertical BULL CALL spread at $4.99 or best
Closing Trade- NOT FOR NEW SUBSCRIBERS
expiration date: September 15, 2017
Portfolio weighting: 10%
Number of Contracts = 22 contracts
Apple has been on an absolute tear for the past week, and was one of the stocks to bounce back the hardest after yesterday’s north Korean inspired meltdown.
My bet that (AAPL) shares would hold up ahead of the new IPhone 8 launch on September 8 has paid off handsomely.
I am therefore taking profits in my position in the Apple (AAPL) September, 2017 $140-$145 in-the-money vertical BULL CALL spread.
Using this morning’s prices, we can now reap 98.00% of the maximum potential profit in this position.
The risk reward of continuing is no longer favorable.
We earned a decent 9.81% on this trade in a mere 7 trading days in this position.
I will plow the cash freed up into new positions, once another sweet spot sets up somewhere.
If you didn’t do options and bought (AAPL) outright, keep it. It is going higher as consumers stampede to buy the new phone, which is said to cost $1,000.
This was a bet that Apple shares will NOT fall below $145 by theSeptember 15 option expiration in 18 trading days, compared to the current $163.78.
Well done, and on to the next trade.
To see how to enter this trade in your online platform, please look at the order ticket below, 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 a Vertical Bear Put Spread by clicking here at
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 on expiration months farther out.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
Here are the specific trades you need to execute this position:
Sell 22 September, 2017 (AAPL) $140 calls at…………………..$24.00
Buy to cover short 22 September, 2017 (AAPL) $145 calls at…$19.01
Potential Profit: $4.99 – $4.50 = $0.49
(22 X 100 X $0.49) = $1,078 or 9.81% in 7 trading days.