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 - Amazon.com, Inc. (AMZN) – BUY
BUY the Amazon.com, Inc. (AMZN) June 2022 $106-$116 in-the-money vertical BULL CALL spread at $8.55
Opening Trade
6-7-2022
expiration date: June 17, 2022
Portfolio weighting: 10%
Number of Contracts = 13 contracts
Amazon.com, Inc. (AMZN) just executed a 20:1 stock split and I believe they will ride the short-term momentum to perform relatively well in the short-term.
This is a 10-day trade that AMZN will be above $116 by expiration day.
I am highly thrilled by the short-term price action this morning as we were dead set on a big sell-off this morning only to experience a big dip-buying splurge.
I believe we can go in here and be quite aggressive in AMZN shares whose cheap nominal shares now allows open access to a new broad set of investors who couldn’t afford AMZN at over $3,000 per share.
This is a highly tactical bet, and this market is really tailor-made for short-term options traders.
I expect tech markets to be highly choppy for the next few months.
Here are the specific trades you need to execute this position:
Buy to Open 13 June 2022 (AMZN) $106.00 calls at………….………$16.20
Sell to Open 13 June 2022 (AMZN) $116 calls at……................…….$7.65
Net Cost:……………………..…….………..…..................................….....$8.55
Potential Profit: $10 - $8.55 = $1.45
(13 X 100 X $1.45) = $1,885 or 16.96%
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.
