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 - Netflix, Inc. (NFLX) – SELL TAKE PROFITS
SELL TAKE PROFITS Netflix, Inc. (NFLX) February 2025 $760-$770 in-the-money vertical BULL CALL spread at $8.75
Closing Trade
1-21-2025
expiration date: February 21, 2025
Portfolio weighting: 10%
Number of Contracts = 12 contracts
Earnings today for NFLX and taking profits before the report is issued.
I’m quite bullish on NFLX in the short-term.
This was a good first trade of the year and I expect to buy the dip in tech stocks in the short-term.
Here are the specific trades you need to execute this position:
Sell to Close 12 February 2025 (NFLX) $760 calls at………….$122.65
Buy to Close 12 February 2025 (NFLX) $770 calls at………….$113.90
Net Proceeds:……………………..…….………..……..........................$8.75
Profit: $8.75 - $7.95 = $0.80
(12 X 100 X $0.80) = $960 or 10.06%
If you are uncertain about 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.
