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) March, 2018 $190-$195 in-the-money vertical BEAR PUT spread at $5.00
Position Closed - NOT FOR NEW SUBSCRIBERS
3-16-2018
expiration date: March 16, 2018
Portfolio weighting: 10%
Number of Contracts = 23 contracts
Thorough some miracle, I managed to pick the only FANG that moved very little over the past month.
This is because Facebook (FB), unlike any other FANG is facing the heavy weight of government regulation as a result of the Russian?s use of its services during the 2016 presidential campaign.
As a result, we caught the maximum profit in our March iron condor in (FB).
This is where we were long Facebook through the (FB) March, 2018 $155-$165 in-the-money vertical BULL CALL spread, and short through the (FB) March, 2018 $190-$195 in-the-money vertical BEAR PUT spread.
As long as (FB) closed between $165 and $190 on the March 16 option expiration day we would capture the maximum profit. That is exactly what happened, with (FB) closing at $185.09.
The combined profit of the two positions works out to $3,066, or 30.66%.
You don?t need to do anything to close this position. That should happen automatically on Monday morning and the profit credited to your account. The margin it occupied will be freed up.
Well done, and on to the next trade.
Here are the specific trades you need to close this position:
Expiration of 23 March 2018 (FB) $195 puts at........$9.91
Expiration of 23 March 2018 (FB) $190 puts at.........$4.91
Net Cost:.................................................$5.00
Profit: $5.00 - $4.45 = $0.55
(23X 100 X $0.55) = $1,266 or 12.35% in 22 trading days.
