We’re Already Ahead 65%… Here’s What to Do

At the beginning of May I released the report “How to Make an Easy 100% Return in 27 Days on the World’s Most Valuable Company“.

The report featured my analysis on Apple Corp. (Nasdaq:AAPL) trade based on my proprietary tools for spotting profitable stock patterns that can provide us with big returns on even the smallest stock-price moves.

This information is part of my Power Profit Trades service. Today I want to bring you up to date on this trade as we come into its last week…

We’re Already Up 65%

If you recall, this trade is set to expire on the final trading day of May, at which time we’ll have to close it out if it hasn’t already met our profit target.

I want to use this time to take a look at what has happened since we issued the report.

At the time the report was published, the AAPL May W5 $125 calls were averaging $4.00 for the week.  That was much lower than the $4.85 priced published before May 1st.

This means you were getting into this option for an average of $400!

Looking at the recent prices of these options, we are currently at 65% (ask) return based on the original average entry price of $4.00.

Click to Enlarge

So What Do We Do Now?


There will always be 1 of 3 outcomes on every trade we take, so let’s take a minute to review them for this case:

1) What if I am Wrong? This is the first thing I think about as I enter a trade. In this case, I want to now RAISE MY STOP to breakeven. That means if I bought the MayW5 $125 calls for $4.00 and they are now worth over $6.50, I want to stop the trade if AAPL goes back down and hits $129 per share. At that point, the trade will still be worth $4.00 and I won’t lose any money.

2) What if I am Right? I assume that if AAPL continues moving higher in the final week, that I have an exit plan to DOUBLE MY MONEY. If I am in this trade for a cost of $4.00 I will set a Target Stop to get out of this trade for a price of $8.00, or a 100% return on investment.

As an alternative, I could sell half of my position at $8.00 and leave the rest open until Friday’s (May 29) close, when I would then exit the remainder of the position.

3) What if I am out of Time? This is a possibility as some trades run through until our time target has been reached. At that point, I simply close out the position and take whatever profits remain in the trade.

I hope you found this update educational as well as profitable. There are many more to come!

Until next time…

Tom Gentile

Tom Gentile

America’s #1 Trader

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