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 - (AMD) –EXPIRATION AT MAX PROFIT
EXPIRATION of the Advanced Micro Devices (AMD) February 2021 $75-$80 in-the-money vertical Bull Call spread at $5.00
Closing Trade – NOT FOR NEW SUBSCRIBERS
2-18-2021
expiration date: February 19, 2021
Portfolio weighting: 10%
Number of Contracts = 23 contracts
This option call spread does not expire until the end of Friday. However, we are now a generous $11.31, or 14.13% above the upper $80 strike price.
Since we added this position, (AMD) has appreciated by $6. As a result, you get to take home $1,380, or 13.63% in 12 trading days as long as (AMD) does not fall by more than $11.31 by tomorrow.
You don’t have to do anything with this expiration.
Your broker (are they still called that?) will automatically use your long position to cover your short position, canceling out the total holdings.
The entire profit will be credited to your account on Monday morning February 22 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
The world is suffering from a global chip shortage which the public is wildly underestimated. Auto and electronics makers around the world are shutting down assembly lines because of chip shortages.
That shortfall is about to get far worse as electric vehicles use five times the number of chips as conventional cars. The advent of 5G has also created astronomical demand for more semiconductors. Within five years, if your device isn’t 5G, it's plain old and won’t work.
This was a bet that Advanced Micro Devices (AMD) will not fall below $80 by the February 19 option expiration day in 12 trading days.
Here are the specific trades you need to close out this position:
EXPIRATION of 23 February 2021 (AMD) $75 calls at….......…$16.31
EXPIRATION of short 23 February 2021 (AMD) $80 calls at...$11.31
Net Proceeds:……………………..…….………..…............……….….....$5.00
Profit: $5.00 - $4.40 = $0.60
(23 X 100 X $0.60) = $1,380, or 13.63% in 12 trading days.
