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 - (BLOK) – EXPIRATION - LOSS
EXPIRATION of the Amplify Transformational Data Sharing ETF (BLOK) December 2021 $47-$50 in-the-money vertical Bull Call spread at $0
Closing Trade
12-17-2021
expiration date: December 17, 2021
Number of Contracts = 38 contracts
From the beginnings of a Santa Claus Rally to Fed Chair Jerome Powell doing a sudden 180-degree pivot, Powell single-handedly crashed the crypto bull-run in the short-term.
Bitcoin is now consolidating after momentum has been subdued by monetary policy.
It quite might be the most irresponsible policy behavior I have ever seen.
My favorite crypto ETF is Amplify Transformational Data Sharing ETF (BLOK) which has morphed into one of the best crypto ETFs on the market since its inception.
(BLOK) is an actively managed ETF that seeks to provide total return by investing at least 80% of its net assets in equity securities of companies actively involved in the development and utilization of blockchain technologies. It trades right at net asset value, meaning you don’t have to pay any premium whatsoever.
(BLOK)’s biggest two positions are Bitcoin proxy MicroStrategy (MSTR) and a Canadian crypto mining company called Hut 8 Mining Corp (HUT), which has already tripled since June.
I have already shot out a MicroStrategy (MSTR) trade alert to new readers and am incredibly bullish on the company.
However, this ETF encompasses more than (MSTR) offering broader exposure to firms related to Bitcoin, crypto miners, and software companies that are heavily into crypto.
Hut 8 engages in industrial-scale bitcoin mining operations. It also owns and operates 38 BlockBoxes in Drumheller, Alberta, and 56 BlockBoxes in Medicine Hat, Alberta.
BlockBoxes are one of the most powerful and cost-effective bitcoin mining units available on the market.
(BLOK) doesn’t track bitcoin 1:1, but it does mimic the price action relatively closely albeit with less extreme swings.
Controlling excess volatility is something you should be happy about.
(BLOK) also has an expense ratio of only 0.71%, which isn’t too expensive for those who want to buy and hold the ETF and not trade the derivative.
Buying (BLOK) is most likely the best way to ensure safe trading under the framework of the SEC, but I understand others have a higher risk profile which is also welcome.
To understand more about the ETF (BLOK), click here.
Here are the specific trades you need to execute this position:
Expiration 38 December 2021 (BLOK) $47 calls at………….………$0
Expiration 38 December 2021 (BLOK) $50 calls at……........…....$0
Net Proceeds:……………………..…….………..……..............…….….....$0
Loss: $2.60 X 38 X 100 = $9,880
