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 - Airbnb, Inc. (ABNB) – SELL – TAKE PROFITS
SELL TAKE PROFITS Airbnb, Inc. (ABNB) April 2023 $100-$105 in-the-money vertical BULL CALL spread at $4.60
Closing Trade
3-21-2023
expiration date: April 21, 2023
Portfolio weighting: 10%
Number of Contracts = 25 contracts
The pendulum has swung to the other end after contagion rocked the tech markets.
I believed the conditions were primed for a melt-up and growth tech would benefit from the repricing to lower interest rates and I was completely correct and now I am taking profits in ABNB after adding an aggressive NFLX call spread.
Remember that technology stock valuation is the most sensitive to changes in interest rate perception.
The bearish news is largely sanitized in the short-term and that is why tech shares are off to the races and I expect positive price action for the rest of march.
I participated in the current tech rally by buying call spread in short-term hotel share firm Airbnb. I wouldn’t hesitate to jump back in on a dip.
Here are the specific trades you need to execute this position:
Sell to Close 25 April 2023 (ABNB) $100 calls at………….………$22.90
Buy to Close 25 April 2023 (ABNB) 105 calls at………...........….$18.30
Net Proceeds:……………………..…….………........................…….....$4.60
Profit: $4.60-$4.00 = $.60
(25 X 100 X $0.60) = $1,500 or 15.00%
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.
