Trade Alert – (NET) June 13, 2025 – BUY

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 – Cloudflare, Inc. (NET) – BUY

Buy Cloudflare, Inc. (NET) July 2025 $150-$155 in-the-money vertical BULL CALL spread at $4.20

 

Opening Trade

6-13-2025

expiration date: July 18, 2025

Portfolio weighting: 10%

Number of Contracts = 24 contracts

I like Cloudflare (NET) in the next 35-day time horizon. I am willing to execute a deep in the money call spread even though we have had a V-shaped rally.

Cybersecurity stocks are breaking out this morning, and I am willing to play it bullishly.

NET is a network service that improves website security, performance, and reliability by acting as a proxy between a website and its users. It offers various services like content delivery networks (CDNs), DDoS protection, and DNS security.

The subsector is outperforming the broader Nasdaq, and playing cyber software stocks is the right strategy in the short term.

Don’t pay more than $4.30

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

Buy to Open 24 July 2025 (NET) $150 calls at………….………$25.00

Sell to short 24 July 2025 (NET) $155 calls at…………………..$20.80

Net Cost:……………………..…….………..………………………………..$4.20

Potential Profit: $5 – $4.20 = $.80

(24 X 100 X $.80) = $1,920 or 19.05% in 35 days

 

 

 

 

If you are uncertain about 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.