When John identifies a strategic exit point, he will send you an alert with specific trade information on 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 - (XOM) – STOP LOSS
SELL the ExxonMobile (XOM) December 2023 $97-$100 in-the-money vertical Bull Call spread at $2.15 or best
Closing Trade
12-6-2023
expiration date: December 15, 2023
Portfolio weighting: 10%
Number of Contracts = 40 contracts
The weak ADP numbers this morning have warned investors that the economy is weaker than they thought, lighting a fire under the bond market.
I am therefore selling the ExxonMobile (XOM) December 2023 $97-$100 in-the-money vertical Bull Call spread at $2.15 or best.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and lower your offer by 5 cents with a second order.
ExxonMobil Corporation is an American multinational oil and gas corporation and the largest direct descendant of John D. Rockefeller’s Standard Oil Company. The firm, which took its present name in 1999 per the merger of Exxon and Mobile Oil, is vertically integrated across the entire oil and gas industry.
Within it is also a chemicals division that produces plastic, synthetic rubber, and other chemical products. ExxonMobil is headquartered near the Houston suburb of Spring, TX, though officially incorporated in New Jersey.
This was a bet that ExxonMobile (XOM) would not fall below $100 by the December 15 option expiration day in 7 trading days. For more about (XOM), please click here for their website.
Here are the specific trades you need to exit this position:
Sell 40 December 2023 (XOM) $97 calls at………….……................…$3.50
Buy to cover short 40 December 2023 (XOM) $100 calls at………....$1.35
Net Proceeds:………………….….…….…..……….........................….….....$2.15
Loss: $2.15 - $2.45 = -$0.30
(40 X 100 X -$0.30) = $1,200
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.
