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) – TAKE PROFITS
SELL Amazon.com, Inc. (AMZN) June 2022 $1,830-$1,840 in-the-money vertical BULL CALL spread at $9.95
Closing Trade
5-27-2022
expiration date: June 17, 2022
Portfolio weighting: 10%
Number of Contracts = 12 contract
In 16 days, Amazon.com, Inc. (AMZN), in volatile trading, has trended higher as markets roar from the bear market rally and we are taking profits here at $9.95.
AMZN had a rough time after I executed this trade and we stuck with the trade, but with today’s inflation number, they have surged another 2% and it’s time to ring in profits.
This doesn’t mean we are out of the woods, but we were so oversold that it’s not shocking to have a little bounce.
We seek to refuel the boat before we set out to sail again.
I expect tech markets to be highly choppy for the next few months.
Here are the specific trades you need to execute this position:
Sell to Close12 June 2022 (AMZN) $1,830 calls at………….………$443.00
Buy to Close 12 June 2022 (AMZN) $1,840 calls at……........…….$433.05
Net Proceeds:……………………..…….………..……...............................$9.95
Profit: $9.95 - $7.50 = $2.45
(12 X 100 X $2.45) = $2,940 or 32.66%
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.
