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
EXPIRATION of the Alphabet Inc. (GOOGL) June 2020 $1,280-$1,285 in-the-money vertical BULL call spread at $5.00
Closing Trade - NOT FOR NEW SUBSCRIBERS
6-19-2020
expiration date: June 19, 2020
Portfolio weighting: 10%
Number of Contracts = 28 contracts
We put on this call spread on May 11th after Alphabet (GOOGL) was lagging the rest of the FANGs and I thought this name would trade sideways through to expiration.
The underlying stock hovered in the $1,400-$1,440 range for most of the trade and this deep-in-the money call spread was never in doubt.
We are taking full profits in this one and I will be back into GOOGL on the next entry point.
Tech is the runaway winner of the stock market in 2020. You would be daft to not be in this sector.
Here are the specific trades you need to execute this position:
EXPIRATION of 28 June 2020 (GOOGL) $1,280 call at….………$148.90
EXPIRATION of 28 June 2020 (GOOGL) $1,285 call at………….$143.90
Net Proceeds:………………........................……..…….………..……......$5.00
Profit: $5 - $3.45 = $1.55
(28 X 100 X $1.55) = $4,340 or 43.40%
