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
EXPIRATION of the Microsoft (MSFT) May 2024 $430-$440 in-the-money vertical Bear Put debit spread at $10.00 or best
Closing Trade
5-17-2024
expiration date: May 17, 2024
Number of Contracts = 12 contracts
I am sending this out now, so I don’t overwhelm you with too many Maximum profit trade alerts on expiration day on Friday, May 17 at the same time.
With this trade, we successfully bet that Microsoft would NOT his a new all-time high as we go into the summer slowdown.
Just to be clear, this position does not expire until after the close on Friday, May 17.
As a result, you get to take home $1,125 or 9.89% in 13 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 May 20 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
The flight of money right now is from small, undercapitalized, and questionable to large, overcapitalized, and rock solid.
This was a bet that Microsoft would not rise above $430 by the May 17 option expiration, a new all-time high.
Here is the specific accounting you need to close out this position:
EXPIRATION of long 12 May (MSFT) $440 puts at………….…$19.01
EXPIRATION of short 12 May (MSFT) $430 puts at….…………$9.01
Net Proceeds:……………………………………….…………...............$10.00
Profit: $10.00 - $8.60 = $1.40
(12 X 100 X $1.40) = $1,680 or 16.28% in 16 days.
