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 - (MSFT) – EXPIRATION AT MAX PROFIT
EXPIRATION of the Microsoft (MSFT) June 2022 $200-$210 in-the-money vertical Bull Call spread at $10.00
Closing Trade
6-17-2022
expiration date: June 17, 2022
Portfolio weighting: 10%
Number of Contracts = 11 contracts
I know I make this look easy, but it’s really not. Practice something for 53 years and you get good at it. (MSFT) is now a distant $40 from its nearest strike price.
Just to be clear, this position does not expire at max profit until the 4:00 pm EST close today. But with seven positions expiring at the same time, I am rolling out the accounting now so you don’t get overwhelmed.
I think it is safe to call this one a win. As a result, you get to take home $1,440 or 13.64% in 20 trading days.
Well done, and on to the next trade.
You don’t have to do anything with this expiration.
Your broker 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, June 20 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
I love Microsoft for the long term.
This was another opportunity to buy Cadillacs at Ford Focus prices.
You needed a crash of Biblical proportions on the scale of the 1987 crash to lose money on this trade, which the current state of the economy doesn’t justify.
This is a bet that Microsoft would not fall below $210 by the June 17 options expiration.
Here are the specific trades you need to close out this position:
Expiration of 12 June 2022 (MSFT) $200 calls at………….………$50.17
Expiration of short 12 June 2022 (MSFT) $210 calls at…….……$40.17
Net Proceeds:……………………........….........………..………….….....$10.00
Profit: $10.00 - $8.80 = $1.20
(12 X 100 X $1.20) = $1,440 or 13.64% in 20 trading days.
