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) – MAX PROFIT AT EXPIRATION
EXPIRATION of Amazon.com, Inc. (AMZN) May 2023 $92-$97 in-the-money vertical BULL CALL spread at $5.00
Closing Trade
5-19-2023
expiration date: April 19, 2023
Portfolio weighting: 10%
Number of Contracts = 23 contracts
We purchased the dip in AMZN and the stock basically skyrocketed after poor earnings.
Tech has melted up and that trend has accelerated as rumors of improved negotiations have forced another wave of tech buying knowing that the US federal government probably won’t default.
Congress is expert at kicking the proverbial can down the road and that won’t stop any time soon.
Profits should hit your account after the weekend.
Buy AMZN on any dip unless there is a black swan credit risk.
Here are the specific trades you need to execute this position:
EXPIRATION of 23 May 2023 (AMZN) $92 calls at………….………$24.00
EXPIRATION of 23 May 2023 (AMZN) $97 calls at…….........…….$19.00
Net Proceeds:……………………..…….………..…..........................….....$5.00
Profit: $5 - $4.25 = $.75
(23 X 100 X $.75) = $1,725 or 17.65%
If you are uncertain on 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.