Trade Alert - (AAPL) October 29, 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.

Alert

Trade Alert - (AAPL) – TAKE PROFITS

SELL the Apple (AAPL) November 2018 $180-$190 in-the-money vertical BULL CALL spread at $9.70 or best

Closing Trade

10-29-2018

expiration date: November 16, 2018

Portfolio weighting: 10%

Number of Contracts = 11 contracts

With Apple up a robust $2.20 this morning I am going to take profits on my long.

The pattern this month is to sell off stocks on the earnings report, whether they are good, bad, or ugly. Apple’s earnings are out on Thursday, November 1.

I am therefore selling my position in the Apple (AAPL) November 2018 $180-$190 in-the-money vertical BULL CALL spread at $9.70 or best.

With 75% of the potential profit in hand the risk/reward of continuing is no longer favorable. By coming out here you get to make $990 or 10.22% in 12 trading days in some of the most horrific trading conditions in history.

This will enable me to buy back into Apple on the rout if it in fact transpires.

This was a bet that the Apple (AAPL) would not trade below $190 by the November 16 option expiration day in 27 trading days.

If you own Apple shares outright keep them. They are a great long term investment.

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

Sell 11 November 2018 (AAPL) $180 calls at………….………$41.00

Buy to cover short 11 November 2018 (AAPL) $190 calls at...$31.30
Net Cost:………………………….………..………….….....$9.70

Profit: $9.70 - $8.80 = $0.90

(11 X 100 X $0.90) = $990 or 10.22% 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.

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 it done, don’t worry there will be more.

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