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 - (FB) - EXPIRATION
EXPIRATION of the Facebook (FB) August 2019 $167.50-$172.50 in-the-money vertical BULL CALL spread at $5.00
Closing Trade
8-16-2019
expiration date: August 16, 2019
Portfolio weighting: 10%
Number of Contracts = 22 contracts
The Facebook (FB) August 2019 $167.50-$172.50 in-the-money vertical BULL CALL spread is about to expire at its maximum value of $5.00. The big bounce in the shares this morning has made this a sure thing. As a result, you earned $1,100 or 11.11% in 7 trading days.
The margin should be freed up and the profit deposited in your account on Monday morning.
This was a bet that the Facebook (FB) would not trade below $172.50 by the August 16 option expiration day in 7 trading days.
Expiration of 22 August 2019 (FB) $167.50 calls at….....……$15.50
Expiration of short 22 August 2019 (FB) $172.50 calls at….$10.50
Net Proceeds:………………………….…..........……..………….….....$5.00
Profit: $5.00 - $4.50 = $0.50
(22 X 100 X $0.50) = $1,100 or 11.11% in 7 trading days.
