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.
Trade Alert - (AMZN) - EXPIRATION
EXPIRATION of the Amazon (AMZN) September 2019 $1,500-$1,550 in-the-money vertical BULL CALL spread at $50.00
Closing Trade - NOT FOR NEW SUBSCRIBERS!
9-20-2019
expiration date: September 20, 2019
Portfolio weighting: 10%
Number of Contracts = 3 contracts
The Amazon (AMZN) September 2019 $1,500-$1,550 in-the-money vertical BULL CALL spread is about to expire at its maximum value of $50.00.
The big bounce in the shares we caught since the August low has made this a sure thing. As a result, you earned $1,200 or 8.70% in 19 trading days.
The margin should be freed up and the profit deposited in your account on Monday morning.
This was a bet that Amazon shares would NOT fall below $1,550.00 by the September 20 option expiration date in 19 trading days. In other words, it was a bet that (AMZN) won’t fall by more than $229 points in four weeks.
This was also a bet that we are not already in a recession, which I believe is still at least 6-12 months off.
Here are the specific trades you need to execute this position:
Expiration of 3 September 2019 (AMZN) $1,500 calls at….$294.72
Expiration of 3 September 2019 (AMZN) $1,550 calls at….$244.72
Net Cost:………………………….…………..…….....................….....$50.00
Profit: $50.00 - $46.00 = $4.00
(3 X 100 X $4.00) = $1,200 or 8.70% in 19 trading days.
