Trade Alert - (AAPL) September 5, 2017
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) TAKE PROFITS
SELL the Apple (AAPL) September, 2017 $170-$175 in-the-money vertical BEAR PUT spread at $4.63 or best
Closing Trade- NOT FOR NEW SUBSCRIBERS
9-5-2017
expiration date: September 15, 2017
Portfolio weighting: 10%
Number of Contracts = 22 contracts
After shooting you 22 consecutive Trade Alerts, and typing my fingers down to bloody stumps, I am shifting into capital protection mode rather than swinging for the fences mode.
It was worth it, delivering you all a net profit of 18.38% in my trade alert service.
Call it my old age, but I am getting cautious.
Things can't last this good forever.
September does not exactly have a happy history, the only month that has averaged a loss over the past 70 years, down some -1.1%.
And I can't tell you the number of hedge funds that have gone bust making wrong way bets during this fateful month.
There is also a chance that the algos will continue to gun Apple stock going into the September 12 iPhone 8 launch announcement next week.
We are getting too close to the $170 strike price we are short to chance it.
So I am therefore taking profits in my position in the Apple (AAPL)September, 2017 $170-$175 in-the-money vertical BEAR PUT
Using this morning's prices, we can now reap 26% the maximum potential profit
We earned a minimal 2.89% on this trade in 16 trading days in this position.
As I expected, Apple staged major breakout last week, and blasted through to a new 2017 high.
This was a bet that the (AAPL) wouldn't move above $170 over the 24 trading days, compared to the then current $156.66.
As I write this, the (AAPL) is trading at $163.63, or up 3.81%.
If you didn't do options and bought the (AAPL) outright, keep it. I think the shares of Steve Jobs'creation have $200 written on them sometime in 2018.
Please note also that this was one leg of an Iron Condor, a bet that a stock won't move up OR down substantially over a short period of time.
You can most profitably add Iron Condors during big volatility spikes, like the one we got in August.
I already took profits on the long leg of the Iron Condor during an earlier (AAPL) rally.
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
http://members.
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:
SELL 22 September, 2017 (AAPL) $175 puts at...........................$11.60
Buy to cover short 22 September, 2017 (AAPL) $170 puts at.............$6.97
Net Proceeds:...................................................................................$4.63
Profit: $4.63 - $4.50 = $0.13
(22 X 100 X $0.13) = $286 or 2.89% in 16 trading days.
