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.
EXPIRATION of the Blackrock (BLK) December 2024 $950-$960 in-the-money vertical bull call debit spread at $10.00
Closing Trade
12-20-2024
expiration date: December 20, 2024
Portfolio weighting: 10% weighting
Number of Contracts = 12 contracts
Since I have a record of ten positions expiring at max profit on Friday, December 20 options expiration, I am going to start sending out the closing trade alerts so you don’t get overwhelmed.
Since I issued it 22 trading days ago, the shares have risen by 12.70% above the nearest $960 strike price.
Just to be clear, this position does not expire until after the close on Friday, December 20.
As a result, you get to take home $1,680 or 16.28% in 22 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, December 23, 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 balance sheets.
There is a new theme in the post-election market. Falling interest rates are out, deregulation is in.
If you can’t do the options, buy the stock. The options for this name are fairly illiquid.
It is hard to imagine an industry that will benefit more from the current industry than the fund management industry. You get a hockey stick effect on earnings as share prices rise, management fees rise, and more money flows into fund managers.
Blackrock is the world’s largest fund manager with $13 trillion in assets under management. (BLK) will also benefit immensely from the coming deregulation trend.
BlackRock, Inc. is an American multinational investment company. It manages a staggering 506 equity funds and 316 fixed-income funds. (BLK) is headquartered in New York City, has 70 offices in 30 countries, and clients in 100 countries.
BlackRock is the manager of the iShares group of ETFs. Its Aladdin software keeps track of investment portfolios for many major financial institutions, and its BlackRock Solutions division provides financial risk management services.
To learn more about Blackrock, please visit their website at https://www.blackrock.com/us/individual
Here is the specific accounting you need to close out this position:
EXPIRATION of 12 December 2024 (BLK) $950 calls at……....….…$106.54
EXPIRATION of short 12 December 2024 (BLK) $960 calls at..…….$96.54
Net proceeds:………………………….……….…………............................…$10.00
Profit: $10.00 - $8.60 = $1.40
(12 X 100 X $1.40) = $1,680 or 16.28% in 22 days.
