Trade Alert - (CRM) November 5, 2018

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 - (CRM) – TAKE PROFITS

SELL the Salesforce (CRM) November 2018 $120-$125 in-the-money vertical BULL CALL spread at $4.92 or best

Closing Trade

11-5-2018

expiration date: November 16, 2018

Portfolio weighting: 10%-NOT FOR NEW SUBSCRIBERS

Number of Contracts = 25 contracts

This was another blockbuster trade, bringing in an awesome 23% profit in only 18 trading days. At current prices we have already reaped 92% of the maximum potential profit.

The risk/reward of continuing with this position is no longer favorable. I’ll leave it to the newbies to carry it for nine more trading days and through the midterm elections.

I spent Sunday speaking to political strategists and have come to a disturbing conclusion. The turnout for the Midterm elections on Tuesday is likely to be the largest in history, with some states seeing turnouts triple that of all-time highs. That has rendered all polls and forecasting models useless. So, ANYTHING could happen. It is all a perfect prescription for stock market volatility.

I am therefor selling my position in the Salesforce (CRM) November 2018 $120-$125 in-the-money vertical BULL CALL spread at $4.92 or best.

By coming out here you get to earn a hefty $2,300 profit in only 18 trading says. Well done, and on to the next trade.

This was a bet that the Salesforce (CRM) would not trade below $125.00 by the November 16 option expiration day in 20 trading days. That was a level 12.11% down from the current price.

If you bought the stock keep it. It is going higher from here.

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

Sell 25 November 2018 (CRM) $120 calls at………….………$17.84

Buy to cover short 25 November 2018 (CRM) $125 calls at….$12.92
Net Proceeds:………………………….………..………….….....$4.92

Profit: $4.92 - $4.00 = $0.92

(25 X 100 X $0.92) = $2,300 or 23.00% in 12 trading days.

To see how to enter this trade in your online platform, please look at the order ticket above, 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 Vertical Call and Put Debit Spreads by clicking here.

You must be logged into your account to view the video.

Please keep in mind that these are ballpark prices only. There is no telling how much the market can move by the time you get this.

Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage. In today's market, investors need every advantage they can get.

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 close to expiration.

If you don't get done, don't worry. There are another 250 Trade Alerts coming at you over the coming 12 months.

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.