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 - Amazon.com, Inc. (AMZN) – SELL TAKE PROFITS
SELL TAKE PROFITS Amazon.com, Inc. (AMZN) February 2025 $215-$220 in-the-money vertical BULL CALL spread at $4.75
Closing Trade
2-19-2025
expiration date: February 21, 2025
Portfolio weighting: 10%
Number of Contracts = 23 contracts
Taking profits in Amazon (AMZN) right now.
Our bull call spread has been a slog to get to profits – it’s sometimes like that.
We are harvesting profits with about a third of the profits left on the table.
The underlying stock is 2% in the money with 3 trading days left, and it is better to lock in these profits now than take a loss.
Remember that I took a small profit in Dell to free up money to go into short-term tactical call spreads in GOOGL and AMZN. Those positions made money, but it was nip and tuck. DELL ironically surged after I took profits, and its V-shaped price action is a good sign for AI stocks for the rest of 2025.
Here are the specific trades you need to exit this position:
Sell to Close 23 February 2025 (AMZN) $215 calls at………..$10.45
Buy to Close 23 February 2025 (AMZN) $220 calls at………….$5.70
Net Proceeds:……………………..……....................………..…….....$4.75
Profit: $4.75 - $4.25 = $0.50
(23 X 100 X $0.50) = $1,150 or 11.76%
If you are uncertain about how to execute a bear put 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.
