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 - Airbnb, Inc. (ABNB) – SELL – TAKE PROFITS
SELL TAKE PROFITS Airbnb, Inc. (ABNB) June 2024 $130-$135 in-the-money vertical BULL CALL spread at $4.95
Closing Trade
6-3-2024
expiration date: June 21, 2024
Portfolio weighting: 10%
Number of Contracts = 24 contracts
I am taking profits in our ABNB bull call spread.
The underlying stock has essentially traded sideways since we executed this position.
That is fine for us as time decay has anointed our position as a winner.
It’s no longer useful to maintain this position and taking profits is the order of the day.
Tech has been quite choppy lately as the news continues to come in mixed.
Good job and onto the next trade.
Here are the specific trades you need to execute this position:
Sell to Close 24 June 2024 (ABNB) $130 calls at………….………$17.00
Buy to Close 24 June 2024 (ABNB) 135 calls at…….…..........….$12.05
Net Proceeds:……………………..…….………..……...........................$4.95
Profit: $4.95 - $4.20 = $0.75
(24 X 100 X $0.75) = $1,800 or 17.86%
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.
