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 - (OXY) - TAKE PROFITS
(Not for recent new subscribers)
SELL the Occidental Petroleum (OXY) June 20, 2025, $60-$62.50 out of the money vertical Bull Call spread LEAPS at $1.00 or best.
Closing Trade: October 9, 2023
Expiration Date: June 20, 2025
Number of Contracts: 1
Given the volatility in oil over the past few weeks, and the heightened recession risks going forward, it seems wise to close this position and take the money off the table.
I am therefore selling the Occidental Petroleum (OXY) January 2025 $60-$62.50 out of the money Bull call spread LEAPS at $1.00 or best.
Here are the specifics you need to exit this position:
Sell 1 June 2025 (OXY) $60 calls at.............................................. $15.10
Buy to cover short 1 June 2025 (OXY) $62.50 calls at................... $14.10
Net Proceeds................................................................................. $1.00
Well done and on to the next trade.
To see how to enter this trade in your online platform, please look at the order ticket above, which I pulled off TastyTrade. If you are uncertain how to execute the options spread, please watch John’s training videos 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.
Don’t execute the legs individually or you will end up losing much of your profit.
These are ballpark prices at best. The market is constantly moving.