Trade Alert - (AAPL) March 26, 2018 TAKE PROFITS
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) April, 2018 $155-$165 in-the-money vertical BULL CALL spread at 8.40 or best
Closing Trade
3-26-2018
expiration date: April 20, 2018
Portfolio weighting: 10%
Number of Contracts = 12 contracts
Apple is not dead, it is just resting. I still see $200 sometime in 2018, just not yet.
I am going to use the $4 rally in Apple this morning to de-risk my trading book and cut back from a 20% long position in Apple (AAPL) to only 10%.
I am there selling my position in the Apple (AAPL) April, 2018 $155-$165 in-the-money vertical BULL CALL spread at 8.40 or best, which is close to my cost.
A heightened volatility regime demands less risk and smaller positions.
I believe that stock markets are in the process of defining a very broad range for the next six months, possibly the 200-day (SPY) moving average at $256 on the downside to $280 on the upside.
I also have unlimited faith in this administration's ability to create a never ending string of crisis that lead to massive stock market selloffs. Suddenly, having cash to spend on these gut churning meltdown days is worth much more than in the past.
Here are the specific trades you need to exit this position:
SELL 12 April 2018 (AAPL) $155 calls at................$15.55
Buy to cover short 12 April 2018 (AAPL) $165 calls at........$7.15
Net Proceeds:..........................................................$8.40
Profit: $8.40 - $8.30 = $0.10
(12 X 100 X $0.10) = $120 or 0.12%.
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.
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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.
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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.