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.
Crypto Alert - MicroStrategy Incorporated (MSTR) – TAKE PROFITS
SELL the MicroStrategy Incorporated (MSTR) April 2022 $365-$385 in-the-money vertical Bull Call spread at $19.00
Closing Trade
3-28-2022
expiration date: April 14, 2022
Number of Contracts = 6 contract
MicroStrategy Incorporated (MSTR) is the publicly accepted proxy for the price of bitcoin and you can play this in the equity market.
This was a short-term bullish tactical trade with a 23-day time horizon.
BTC melted it up with the rest of equities and the trend of incremental adoption is here with the kinetic war.
Russia has also floated the possibility of getting paid in BTC for their oil export.
BTC is here to stay, and we are looking to buy the next dip.
Here are the specific trades you need to exit this position:
Sell to Close 6 April 2022 (MSTR) $365 calls at………….………$129.00
Buy to Close 6 April 2022 (MSTR) $385 calls at………............$110.00
Net Proceeds:……………………...................………..………….….....$19.00
Profit: $19 - $16 = $3
(6 X 100 X $3) = $1,800 or 18.75%
If you are uncertain on 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.
