Trade Alert - (AAPL) October 29, 2021

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.

Tech Alert - Apple Inc. (AAPL) - BUY

BUY Apple Inc. (AAPL) November 2021 $137-$142 in-the-money vertical BULL call spread at $4.28

Opening Trade

10-29-2021

expiration date: November 19, 2021

Portfolio weighting: 10%

Number of Contracts = 23 contracts

This is a short-term bet that Apple Inc. (AAPL) will stay above $142 by November 19th expiration.

Apple is down more than 3% this morning because of constraints that had around a $6 billion revenue dollar impact, driven primarily by industrywide silicon shortages and COVID-related manufacturing disruptions.

This does nothing to dent the overall story of Apple and as for the China risk, they just ordered a new Apple store in the Hunan Province in a city called Changsha.

They set an all-time record for Mac and quarterly records for iPhone, iPad, wearables, home, and accessories, representing 30 percent year-over-year growth in products.

Apple’s services business performed better than expected where they had an all-time record of $18.3 billion and grew 26 percent year over year. And they set quarterly records in every geographic segment with strong double-digit growth across the board.

That sounds like a company to dip buy into which is what we are doing.

Apple still has a chance at hitting my year-end target of $170, but if they can’t eke it out by late December, then it will surely happen by early 2022.

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

Buy 23 November 2021 (AAPL) $137 calls at…………………$10.72

Sell short 23 November 2021 (AAPL) $142 calls at………….$6.44

Net Cost:……………………..…….………........................…….....$4.28

Potential Profit: $5 - $4.28 = $.72

(23 X 100 X $.72) = $1,656 or 16.82% in 21 days

If you are uncertain on 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.

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