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 - Micron Technology, Inc. (MU) – Expiration
Expiration of Micron Technology, Inc. (MU) October 2024 $85-$90 in-the-money vertical BULL CALL spread at $5.00
Closing Trade – Not For New Subscribers
10-18-2024
expiration date: October 18, 2024
Portfolio weighting: 10%
Number of Contracts = 23 contracts
Micron (MU) has done nothing but elevate since I initiated this trade. The underlying stock is trading at $110 per share and our upper strike is $90 on the last day until expiration of our position. We will harvest max profits from this great trade.
This trade was almost on cruise control as we used a brief dip to strap on a high quality MU trade.
I was almost enticed to double up my position.
The news coming out of MU is strong and they basically cannot make enough chips. This puts them in a strong strategic position and I see the benefits in the price action.
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, October 21, and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
Here are the specific trades you need to exit this position:
Expiration of 23 October 2024 (MU) $85 calls at……….….…….…$25.00
Expiration of short 23 October 2024 (MU) $90 calls at……….….$20.00
Net Proceeds:……………………..…….………..……..............................$5.00
Profit: $5 - $4.35 = $.65
(23 X 100 X $.65) = $1,495 or 14.94% in 17 days
