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 - (SNOW) – TAKE PROFITS
SELL the Snowflake (SNOW) December 2023 $135-$140 in-the-money vertical Bull Call spread at $4.95 or best
Closing Trade
12-4-2023
expiration date: December 15, 2023
Portfolio weighting: 10%
Number of Contracts = 25 contracts
There is nothing like a 17.96% move in three days in a stock I own to get my juices flowing. But with 95.00% of the maximum profit in hand, I am going to take the money and run.
The risk/reward of continuing is no longer favorable with nine trading days left until the December 15 option expiration. Better to raise cash to pour it into another new position. This position is now an astonishing 40.17% in-the-money.
If you don’t do options, buy the stock. My target for (SNOW) in 2024 was $190, up 35%.
Snowflake is at the epicenter of the revolution in artificial intelligence. It specializes in the management of massive amounts of data with the US government as a major client. Since $1 trillion is pouring into AI capital investment in 2024, I can’t think of a better stock to buy.
These particular strike prices are especially interesting since they define the bottom of a two-year range.
I am therefore selling the Snowflake (SNOW) December 2023 $135-$140 in-the-money vertical Bull Call spread at $4.95 or best.
As a result, you get to take home $2,375 or 23.75% in 14 trading days. Well done and on to the next trade.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and lower your offer by 2 cents with a second order.
Snowflake Inc. is a cloud computing-based data company based in Bozeman, Montana. It was founded in July 2012 and was publicly launched in October 2014 after two years in stealth mode. The firm offers a cloud-based data storage and analytics service, generally termed "data-as-a-service".
This was a bet that Snowflake (SNOW) would not fall below $140 by the December 15 option expiration day in 9 trading days.
For more about (SNOW), please click here for their website.
Here are the specific trades you need to exit this position:
Sell 25 December 2023 (SNOW) $135 calls at………….................…$50.00
Buy to cover short 25 December 2023 (CCJ) $140 calls at………....$45.05
Proceeds:……………………..…….………..………….….............................$4.95
Profit: $4.95 - $4.00 = $0.95
(25 X 100 X $0.95) = $2,375 or 23.75% in 9 trading days.
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.
