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) SELL-STOP LOSS
SELL the Facebook (FB) July, 2017 $145-$148 in-the-money vertical bull call spread at $1.97 or best
Closing Trade
7-3-2017
expiration date: July 21, 2017
Portfolio weighting: 10%
Number of Contracts = 25 contracts
Facebook (FB) is threatening its downside support, as is the rest of big tech, so I am going to stop out of the long side of this position.
I will continue to run the short side, which means we will still net a profit overall by the July 21 expiration date in 13 trading days.
I also more than covered this loss with the long position in Goldman Sachs (GS) which I picked up on the cheap on Friday afternoon. It is rocketing today.
The Great Rotation continues.
July is shaping up to be one of my most profitable months of 2017.
To see how to enter this trade in your online platform, please look at the order ticket below, 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 a Vertical Bull Call Spread by clicking here at https://www.madhedgefundtrader.com/ltt-executetradealerts/.
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 with only 13 days 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.
Here are the specific trades you need to execute this position:
SELL 25 July, 2017 (FB) $145 calls at.........................$5.60
Buy to cover short 25 July, 2017 (FB) $148 calls at..............................$3.63
Net Proceeds:...........................................................$1.97
Loss: $2.50 - $1.97 = -$0.53
(25 X 100 X -$0.53) = -$1,325 or -26.90%.
