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 - Microsoft Corporation (MSFT) – STOP LOSS
SELL Microsoft Corporation (MSFT) November 2022 $210 - $215 in-the-money vertical BULL CALL spread at $3.35
Closing Trade
11-3-2022
expiration date: November 18, 2022
Portfolio weighting: 10%
Number of Contracts = 25 contracts
The short-term bear market tech rally is over as the US Central Bank signaled that they expect to be more hawkish than expected yesterday afternoon.
I am exiting my long positions because in the short-term, pressure will be to the downside.
Here are the specific trades you need to execute this position:
Sell to Close 25 November 2022 (MSFT) $210 calls at………….……….$11.20
Buy to Close 25 November 2022 (MSFT) $215 calls at……...........…….$7.85
Net Proceeds:……………………..…….…........................……..……...........$3.35
Loss: $3.73 - $3.35 = $.38
(25 X 100 X $.38) = $950 or 10.19%
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.
