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 - Adobe Inc. (ADBE) – SELL
SELL – TAKE PROFITS Adobe Inc. (ADBE) June 2020 $330-$335 in-the-money vertical BULL call spread at $4.98
Closing Trade
5-28-2020
expiration date: June 19, 2020
Portfolio weighting: 10%
Number of Contracts = 22 contracts
We added a call spread yesterday in Adobe and the underlying stock surged uninterrupted 6% since I issued the trade alert in less than 2 days.
I like quick profits and it doesn’t get better than this.
I can’t guarantee that I will always call the bottom of every dip or the top of every peak, but this individual trade was a home run.
The sector strength in the tech sector is just too hard to ignore.
As market analysts debate whether there will be a “second wave” or soft reopening, the tech industry doesn’t care one iota as a second wave would push more revenue into the lead sector of the equity market - tech.
I mentioned in the trade alert write-up for Adobe that I would be inclined to get into Salesforce, Amazon, and just look at Salesforce today up over 4%.
We have been inundated with a wave of new subscribers looking to profit from technology sector stocks and this is the place to be for the best information.
With the “Fed put” here to stay, investors cannot be overly bearish because of the floor set by the central bank.
If you can’t get filled, don’t panic because the underlying stock is 10% in the money and just let the prices come to you.
If you don’t do options, stand aside. Well done and on to the next trade.
Here are the specific trades you need to execute this position:
Sell 22 June 2020 (ADBE) $330 call at…………...............………$58.15
Buy to cover short 22 June 2020 (ADBE) $335 call at………….$52.97
Net Proceeds:……………………..…….………..…….....$4.98 ($5.18 is midpoint)
Profit: $4.98- $4.35 = $0.63
(22 X 100 X $0.63) = $1,386 or 13.86% in 2 days
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 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.
