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
BUY the Apple (AAPL) October, 2017 $140-$145 in-the-money vertical BULL CALL spread at $4.48 or best
expiration date: October 20, 2017
Portfolio weighting: 10%
Number of Contracts = 22 contracts
Buying Apple shares after a $21, 12% correction sounds like a good idea to me.
We have a Ping-Pong market now, with investors rotating back and forth between the FANG’s and domestic laggards, like industrial, railroads, energy, legacy semiconductors, financials, and metals.
After a serious dump, the FANG’s are not far from a short-term bottom.
This is a bet that Apple shares will NOT fall below $145 by the October 20 option expiration in 18 trading days, compared to the current $156.46.
To lose money on this trade Apple would have to fall straight into the momentous IPhone X launch, which isn’t going to happen.
Don’t pay more than $4.65 for this position or you’ll be chasing.
If you don’t do options, dip your toe in the water and buy some Apple shares here.
Longer term, I think Apple will continue to appreciate, possibly to $200 by some time in 2018.
To see how to enter this trade in your online platform, please look at the order ticket below, 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 a Vertical Bear Put Spread by clicking here at
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.
Here are the specific trades you need to execute this position:
Buy 22 October, 2017 (AAPL) $140 calls at……………………..$13.50
Sell short 22 October, 2017 (AAPL) $145 calls at…………………$9.02
Potential Profit: $5.00 – $4.48 = $0.52
(22 X 100 X $0.52) = $1,144 or 10.40% in 18 trading days.