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.
EXPIRATION of the Citigroup (C) December 2024 $60-$65 in-the-money vertical Bull Call debit spread at $5.00 or best
Closing Trade
12-20-2024
expiration date: December 20, 2024
Number of Contracts = 25 contracts
Since I have a record ten positions expiring at max profit on the Friday, December 20 options expiration, I am going to start sending out the closing trade alerts so you don’t get overwhelmed.
Since I issued it 26 trading days ago, the shares have risen by 13.08% above the nearest $65 strike price.
Just to be clear, this position does not expire until after the close on Friday, December 20.
As a result, you get to take home $1,625 or 14.94% in 27 days.
Well done and on to the next trade.
You don’t have to do anything with this expiration.
Your broker will automatically use your long position to cover your short position, canceling out the total holdings.
The entire profit will be credited to your account on Monday morning December 23 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
The flight of money right now is from small, undercapitalized, and questionable to large, overcapitalized and rock solid balance sheets.
There is a new theme in the post-election market. Falling interest rates are out, deregulation is in.
Citigroup’s blockbuster earnings report has blasted the stock to a new all-time high, dragging the rest of the financial sector with it. It is also a major beneficiary of the new post-election deregulation trend and massive stimulation of the economy.
Financials are back!
Increasingly, investors don’t want to be left behind by the monster post-election rally. The October selloff proved to be only a 4.5% drawdown at the beginning of the month.
(C) is one of the top commercial banks in the US, with a market capitalization of $598 billion. They are one of the most profitable banks and pay a generous 3.12% dividend yield. Yet they sport a price earnings multiple of only 19X versus 22X for the S&P 500. They have far and away one of the most sophisticated and conservative risk control procedures out there.
The Fed will certainly cut interest rates by 25 basis this December because it is already in the mail. I did a LEAPS on (JPM) last year and followers earned a handy 100% return in nine months. I like returning to wells that refresh me.
To learn more about the company, please visit their website at https://www.citigroup.com/global
This was a bet that Citigroup would not fall below $65 by the December 20 option expiration in 27 days.
Here is the specific accounting you need to close out this position:
EXPIRATION of 25 December 2024 (C) $60 calls at………….………$11.11
EXPIRATION of short 25 December 2024 (C) $65 calls at……..……$6.11
Net Proceeds:……………………………………….…….…..........................$5.00
Profit: $5.00 - $4.35 = $0.65
(25 X 100 X $0.65) = $1,625 or 14.94% in 27 days.
