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.com, inc. (CRM) – EXPIRATION
EXPIRATION of salesforce.com, inc. (CRM) June 2020 $157.50-$162.50 in-the-money vertical BULL call spread at $5.00
Closing Trade – NOT FOR NEW SUBSCRIBERS
6-19-2020
expiration date: June 19, 2020
Portfolio weighting: 10%
Number of Contracts = 22 contracts
This was a short-term bet that salesforce.com (CRM) would perform at least slightly down to sideways in 16 days with our floor being a strike price of $162.50.
It did that and a whole lot more with CRM trading at a Himalayan $188, a full $15 higher than our upper strike.
The tech portfolio going bullish short-term has paid dividends and after harvesting maximum profits for 3 call spreads at today’s expiration, the portfolio is now up 13.78% YTD.
Here are the specific trades you need to execute this position:
Expiration of 22 June 2020 (CRM) $157.50 call at…….………$30.80
Expiration of 22 June 2020 (CRM) $162.50 call at………...….$25.80
Net Proceeds:………………....................……..…….………..…….....$5.00
Profit: $5 - $4.50 = $0.50
(22 X 100 X $0.50) = $1,100 or 11.00% in 16 days
