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) September 2019 $150-$160 in-the-money vertical BULL CALL spread at $10.00
Closing Trade - NOT FOR NEW SUBSCRIBERS!
9-20-2019
expiration date: September 20, 2019
Portfolio weighting: 10%
Number of Contracts = 11 contracts
The Facebook (FB) September 2019 $150-$160 in-the-money vertical BULL CALL spread is about to expire at its maximum value of $10.00. The big bounce in the shares we caught since the August low has made this a sure thing. As a result, you earned $1,100 or 11.11% in 19 trading days.
The margin should be freed up and the profit deposited in your account on Monday morning.
This was a bet that Facebook shares would NOT fall below $160.00 by the September 20 option expiration date in 19 trading days. In other words, it is a bet that (FB) won’t fall by more than $21 in four weeks.
This is also a bet that we are not already in a recession, which I believe is still at least 6-12 months off.
Well done and on to the next trade.
Here are the specific trades you need to exit this position:
Expiration of 11 September 2019 (FB) $150 calls at…....….…$39.82
Expiration of short 11 September 2019 (FB) $160 calls at….$29.82
Net Cost:……………....................…………….…………..…….….....$10.00
Profit: $10.00 - $9.00 = $1.00
(11 X 100 X $1.00) = $1,100 or 11.11% in 19 trading days.
