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) – SELL – TAKE PROFITS
SELL TAKE PROFITS Adobe Inc. (ADBE) February 2025 $407.50-$412.50 in-the-money vertical BULL CALL spread at $4.97
Closing Trade
2-18-2025
expiration date: February 21, 2025
Portfolio weighting: 10%
Number of Contracts = 25 contracts
The underlying stock ADBE has performed quite well in this call spread that we executed.
We had an initial dip to around $430 per share, but ADBE stock recovered to over $460 per share today, and we are harvesting profits here 3 days away from expiration.
Well done, and on to the next trade.
Here are the specific trades you need to exit this position:
Sell to Close 25 February 2025 (ADBE) $407.50 calls at………….$55.80
Buy to Close 25 February 2025 (ADBE) $412.50 calls at………….$50.83
Net Proceeds:……………………..…….……..............................…….....$4.97
Profit: $4.97 - $4.10 = $0.87
(25 X 100 X $0.87) = $2,175 or 21.22%
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.
