• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

Trade Alert - (AAPL) May 12, 2022 - BUY A DOUBLE POSITION

Trade Alert

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.


Alert

 

Trade Alert - (AAPL) – BUY A DOUBLE POSITION

Buy the Apple (AAPL) June 2022 $110-$120 in-the-money vertical Bull Call spread at $8.60 or best

Opening Trade

5-12-2022

expiration date: June 17, 2022

Portfolio weighting: 20%

Number of Contracts = 25 contracts

You wait ten years to put on a position like this.

Apple is the highest quality company in the market, so extremely deep in-the-money with the Volatility Index (VIX) at $34 should be free money. Of course, you strap on a double weighting.

The spice on the cake is a Mad Hedge Market Timing Index at 6, which only hits single digits every few years.

Trade this market like there will be a $1,000 point rally in the Dow tomorrow. If that happens, you want to write call options against your entire portfolio and go net short.

If you don’t do options, buy the stock. My target for (AAPL) over the next year years is $250, up 78.5%.

I am therefore buying the Apple (AAPL) June 2022 $110-$120 in-the-money vertical Bull Call spread at $8.60 or best. 

Don’t pay more than $9.00 or you’ll be chasing.

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and increase your bid by 10 cents with a second order.

This is a bet that Apple (AAPL) will not fall below $120 by the June 17 option expiration day in 25 trading days. For more about (AAPL), please click here for their website.

Here are the specific trades you need to execute this position:

Buy 25 June 2022 (AAPL) $110 calls at…………..………$33.00

Sell short 25 June 2022 (AAPL) $120 calls at………....$24.40

Net Cost:……………………..…….……….......…………..….....$8.60

Potential Profit: $10.00 - $8.60 = $1.40

(25 X 100 X $1.40) = $3,500 or 16.28%.

 

 

 

 

If you are uncertain about how to execute an options spread, please watch my training video by clicking here.

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.

 

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://www.madhedgefundtrader.com/wp-content/uploads/2016/02/Alert-e1457452190575.jpg 135 150 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2022-05-12 13:03:472022-05-12 13:18:21Trade Alert - (AAPL) May 12, 2022 - BUY A DOUBLE POSITION

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: Trade Alert - (AAPL) May 12, 2022 - BUY Link to: Trade Alert - (AAPL) May 12, 2022 - BUY Trade Alert - (AAPL) May 12, 2022 - BUY Link to: Trade Alert - (RIVN) May 12, 2022 - BUY Link to: Trade Alert - (RIVN) May 12, 2022 - BUY Trade Alert - (RIVN) May 12, 2022 - BUY
Scroll to top