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) – 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.
