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.
Tech Alert - (FISV) – EXPIRATION – TAKE PROFITS
Expiration of Fiserv, Inc. (FISV) October 2019 $90-$95 in-the-money vertical BULL CALL spread at $5.00
Closing Trade
10-18-2019
expiration date: October 18, 2019
Portfolio weighting: 10%
Number of Contracts = 23 contracts
Fiserv, Inc. (FISV), together with its subsidiaries, provides account and billing financial services technology worldwide and is as stable as they come.
The stock was down almost 3% as economic indicators continue to tank the broader market and gave us a great entry point into this stock which has had a great 2019.
This was a short-term bet that the underlying stock would stay above $95 and it never threatened staying most of the time above $105, a full 10% higher than our upper strike.
The price action of this stock reminds me of Microsoft (MSFT).
The company is extremely profitable and has a bulletproof balance sheet. These are the types of tech stocks the market is putting a higher multiple on as the market has shifted the last few weeks.
I believe FISV will be able to withstand the external pressure that is penalizing fringe tech stocks.
Trader must be extraordinarily nimble in precarious trading times like now.
Expiration of 23 October 2019 (FISV) $90 calls at.………$15.80
Expiration of 23 October 2019 (FISV) $95 calls at...…….$10.80
Net Proceeds:……………………..…….………..……..................$5.00
Profit: $5.00 - $4.40 = $0.60
(23 X 100 X $0.60) = $1,380 or 13.80%
