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 - Adobe Inc. (ADBE) – STOP LOSS
SELL Adobe Inc. (ADBE) April 2024 $465-$475 in-the-money vertical BULL CALL spread at $5.50
Closing Trade
4-12-2024
expiration date: April 19, 2024
Portfolio weighting: 10%
Number of Contracts = 13 contracts
This Adobe (ADBE) trade has been a death by a thousand cuts.
The price action has been nothing short of abysmal and we had a hard time moving out of the $480 range.
Every surge was met by an even greater drawdown.
I am cutting my losses here as ADBE opened up today in another massive red day.
The stock is down around 30% from the highs.
Pass on ADBE in the short term and move to higher ground.
I am surprised buyers passed on ADBE on the dip. History has shown those dip buyers have been there for ADBE.
Here are the specific trades you need to exit this position:
Sell to Close 13 April 2024 (ADBE) $465 calls at………….………$11.00
Buy to Close 13 April 2024 (ADBE) $475 calls at……..…........….$5.50
Net Proceeds:……………………..…….………..……..........................$5.50
Loss: $7.55-$5.50 = $2.05
(13 X 100 X $2.05) = $2,665 or 27.15%
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of Interactive Brokers.
If you are uncertain on how to execute an options spread, please watch my training video on “How to Execute a Vertical Bull Call Spread” by clicking here at
http://www.madhedgefundtrader.com/ltt-vbpds/
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.
