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 Alphabet Inc. (GOOGL) November 2021 $2,730-$2,735 in-the-money vertical BULL call spread at $5.00
Closing Trade
11-19-2021
expiration date: November 19, 2021
Portfolio weighting: 10%
Number of Contracts = 23 contracts
This was a short-term bet that Alphabet (GOOGL) would stay above $2,735 by November 19th expiration and unless the stock drops almost 9% chance today which it certainly won’t, it will expire at max profit.
How did we get into the trade?
GOOGL retraced around 3% the day we executed the trade and I was and still am bullish tech going into the debt ceiling event of December so I decided to go risk-on with a few tech stocks.
GOOGL has been one of the tech’s best performers in 2021 and it should finish the year strongly.
Well done and on to the next trade!
You don’t have to do anything with this expiration.
Your broker 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, November 22 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
If you don’t do options, you should be holding the stock and never sell it.
Here are the specific trades you need to exit this position:
Expiration of 23 November 2021 (GOOGL) $2,730 calls at…….…….………$270.40
Expiration of short 23 November 2021 (GOOGL) $2,735 calls at…….…….$265.40
Net Proceeds:…………………….........................................…….………...…….....$5.00
Profit: $5 - $4.25 = $0.75
(23 X 100 X $0.75) = $1,725 or 17.65% in 18 days
