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) – EXPIRATION AT MAX PROFIT
EXPIRATION of the Alphabet Inc. (GOOGL) July 2021 $2,310-$2,315 in-the-money vertical BULL call spread at $5.00
Closing Trade – NOT FOR SUBSCRIBERS WHO TOOK PROFITS ON BOTH GOOGL CALL SPREADS ON JULY 2nd. THESE ARE INSTRUCTIONS FOR SUBSCRIBERS WHO DIDN’T CLOSE THEIR GOOGL POSITION(S) ON JULY 2nd
7-16-2021
expiration date: July 16, 2021
Portfolio weighting: 10%
Number of Contracts = 23 contracts
On July 2nd, I took profits on 2 GOOGL call spreads with the same July 16, 2021 expiration and strike prices of $2,310-$2,315 at $4.95.
Profits for those two GOOGL call spreads should have been a percentage profit of 17.86% and 15.12% for each respective position.
However, we have been receiving emails from new subscribers who held the position until today (expiration) and are asking what to do with it.
Therefore, if you have already closed out the GOOGL positions, then please ignore this write-up.
For the subscribers that need to still close out the position, GOOGL is almost certain not to lose more than 8% by the end of the trading day today, meaning you will finish the day harvesting maximum profits.
You don’t have to do anything with this expiration. If you are holding 2 call spreads, again, do nothing.
Your broker (are they still called that?) will automatically use your long position to cover your short position, canceling out the total holdings.
The entire profit will be credited to your account on Monday morning July 19 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
GOOGL has to be the best FANG stock right now and it is firing on all cylinders.
If you don’t do options, you should be holding the stock and never sell it.
Here are the specific trades you need to close out this position:
Expiration of 23 July 2021 (GOOGL) $2,310 calls at………….….……$226.60
Expiration of 23 July 2021 (GOOGL) $2,315 calls at……..........…….$221.60
Net Proceeds:……………………..……...............................………..…….....$5.00
(GOOGL call spread executed 6/17)
Max Profit (at Expiration): $5.00 - $4.30 = $0.70
(23 X 100 X $0.70) = $1,610 or 16.28%
(GOOGL call spread executed 6/22)
Max Profit (at Expiration): $5.00 - $4.20 = $0.80
(23 X 100 X $0.80) = $1,840 or 19.05%
