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 - Alphabet Inc. (GOOGL) – STOP LOSS
SELL Alphabet Inc. (GOOGL) April 2022 $2,710- $2,740 in-the-money vertical BULL CALL spread at $18.00
Closing Trade
4-6-2022
expiration date: April 14, 2022
Portfolio weighting: 10%
Number of Contracts = 4 contract
We are experiencing a massive deleveraging in the Nasdaq and I am surprised that the price action is dragging down GOOGL.
We will need to trim risk right here, there is a chance that Fed commentary will prove to be more hawkish than first thought, but there is a growing consensus that the Fed put has dissipated and we will need to trade accordingly.
In the short-term, expect highly choppy trading in the Nasdaq.
Here are the specific trades you need to exit this position:
Sell to Close 4 April 2022 (GOOGL) $2,710 calls at………….………$59.00
Buy to Close 4 April 2022 (GOOGL) $2,740 calls at……........…….$41.00
Net Proceeds:……………………..…….……........................…..…….....$18.00
Loss: $24 - $18 = $6
(4 X 100 X $6) = $2,400 or 25%
If you are uncertain on how to execute an options spread, please watch my training video by clicking here.
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 on expiration months farther out.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
