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 - Salesforce, Inc. (CRM) – SELL – TAKE PROFITS
SELL – TAKE PROFITS Salesforce, Inc. (CRM) June 2023 $197.50-$202.50 in-the-money vertical BULL CALL spread at $4.70
Closing Trade
6-13-2023
expiration date: June 16, 2023
Portfolio weighting: 10%
Number of Contracts = 24 contracts
CRM is having a tough day in an otherwise strong day for the Nasdaq index.
The stock has come back some ways from the $220 level and it's getting a little too close for comfort so I am going to take profits here while a large portion of it is still on the table.
Nobody ever went bankrupt from taking a profit.
Tech stocks have been roaring lately with multiple tailwinds at its back.
I recommend to buy the dip in any premium tech stock.
Here are the specific trades you need to exit this position:
Sell to Close 24 June 2023 (CRM) $197.50 calls at………….………$11.80
Buy to Close 24 June 2023 (CRM) $202.50 calls at….........……….$7.10
Net Proceeds:……………………..…….……….........................…….....$4.70
Profit: $4.70- $4.20 = $.50
(24 X 100 X $.50) = $1,200 or 11.9%
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.