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 - Advanced Micro Devices, Inc. (AMD) – TAKE PROFITS
SELL Advanced Micro Devices, Inc. (AMD) December 2023 $100-$105 in-the-money vertical BULL CALL spread at $4.95
Closing Trade
12-4-2023
expiration date: December 15, 2023
Portfolio weighting: 10%
Number of Contracts = 24 contracts
I thought that Nvidia (NVDA) reporting on November 21 would be a catalyst for AMD shares to move higher and that is exactly what happened.
November was also a seasonably positive time of the year for tech stocks and the move up was quite dramatic.
Traders are also betting hard on a Fed pivot.
Now is the time to take profits in AMD.
Here are the specific trades you need to exit this position:
Sell to Close 24 December 2023 (AMD) $100 calls at………….………$17.95
Buy to Close 24 December 2023 (AMD) $105 calls at…........……….$13.00
Net Proceeds:……………............................………..…….………..…….....$4.95
Profit: $4.95 - $4.15 = $.80
(24 X 100 X $.80) = $1,920 or 19.28%
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.
