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 - (DAL) TAKE PROFITS
SELL the Delta Airlines (DAL) March, 2018 $40-$45 in-the-money vertical BULL CALL spread at $4.85 or best
Closing Trade
2-13-2018
expiration date: February 16, 2018
Portfolio weighting: 10%
Number of Contracts = 25 contracts
Yes, I'?ll take a 21.25% profit in two trading days.
That is the reward for picking up Delta Airlines (DAL) at the absolute bottom at the Friday low.
My bet that the Friday low was the final bottom in the correction turned out to be true. $252 for the (SPY) was the line in the sand.
I am therefore going to take profits in my position in the Delta Airlines (DAL) March, 2018 $40-$45 in-the-money vertical BULL CALL spread.
If you didn't do options, and bought Delta shares outright keep them. They will eventually recover to new highs.
Here are the specific trades you need to execute this position:
Sell 25 March 2018 (DAL) $40 calls at..........................................................$12.45
Buy to cover short 25 March 2018 (DAL) $45 calls at.....................................$7.60
Net Proceeds:................................................................................................$4.85
Profit: $4.85 - $4.00 = $0.85
(25 X 100 X $0.85) = $2,125 or 21.25% in two trading days.
To see how to enter this trade in your online platform, please look at the order ticket above, which I pulled off of Interactive Brokers.
If you are uncertain on how to execute an options spread, please watch my training video on How to Execute Vertical Call and Put Debit Spreads by clicking here.
You must be logged into your account to view the video.
Please keep in mind that these are ballpark prices only. There is no telling how much the market can move by the time you get this.
Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage. In today's market, investors need every advantage they can get.
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 close to expiration.
If you don't get done, don't worry. There are another 250 Trade Alerts coming at you over the coming 12 months.
