When John identifies a strategic exit point, he will send you an alert with specific trade information on 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 - (BA) – STOP LOSS
SELL the Boeing (BA) February 2024 $190-$200 in-the-money vertical Bull Call debit spread at $6.45 or best
Closing Trade
1-16-2024
expiration date: February 16, 2024
Portfolio weighting: 10%
Number of Contracts = 11 contracts
This has been the most stunning selloff in Boeing shares since the original 737 MAX crash in March of 2019. It’s getting too hot to handle for my taste, so I am stopping out here at my upper strike price. All downside support has been crushed.
Long-term holders can keep the stock as I expect an eventual bounce back. A two-company monopoly in the global aircraft industry provides a pretty ferocious tailwind. But that may happen in the next 23 trading days.
I am therefore selling the Boeing (BA) February 2024 $190-$200 in-the-money vertical Bull Call debit spread at $6.45 or best.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and lower your offer by 10 cents with a second order.
This was a bet that Boeing (BA) would not fall below $200 by the February 16 option expiration day in 25 trading days.
Here are the specific trades you need to close out this position:
Sell 11 February 2024 (BA) $190 calls at…….........…….………$16.00
Buy to cover shot 11 February 2024 (BA) $200 calls at....…....$9.55
Net Proceeds:……………………..…….………...........………….….....$6.45
Loss: $9.00 - $6.45 = $2.55
(11 X 100 X $2.55) = $2,805.
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.
