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.
Trade Alert - (GS) – TAKE PROFITS
Sell the Goldman Sachs (GS) June 2021 $320-$330 vertical bull call spread at $9.95 or best
Closing Trade
6-2-2021
expiration date: June 18, 2021
Portfolio weighting: 10%
Number of Contracts = 12 contracts
Since we added this position two weeks ago, the shares of Goldman Sachs have gone up virtually every day. We are now a monster $52 above the nearest strike price.
We are now in the enviable place where we have captured 96.67% of the maximum potential profit.
To continue on from here would be madness. As my late mentor, Morgan Stanley’s legendary Barton Biggs, told me, always lease the last five cents of a move for the next guy.
I am therefore selling the Goldman Sachs (GS) June 2021 $320-$330 vertical bull call spread at $9.95 or best.
Buy coming out here you get to take home an impressive $1,740 or 17.06% in only 10 trading days. Well done, and on to the next trade!
If you can’t do options, buy the stock on the next big dip. I expected Goldman Sachs to make it to $400 this year.
I am making a fortune in the stock market.
You are making a fortune in the stock market.
Goldman Sachs is making a fortune in the stock market.
That makes me want to buy Goldman Sachs, which is profiting immensely off of the current bull market.
The company just announced earnings and they couldn’t be more pristine.
Q1 net revenues came to an eye-popping $7.7 billion. Earnings per share amounted to $18.60, up an astonishing 500% from a year ago. Return on equity was 31%. It doesn’t get any better than that.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and lower your offer by 5 cents with a second order.
This was a bet that Goldman will not trade below $330 by the June 18 option expiration day in 22 trading days.
Here are the specific trades you need to exit this position:
Sell 12 May 21 (GS) $320 calls at………................….………$62.00
Buy to cover short 12 May 21 (FCX) $330 calls at………....$52.05
Net Proceeds:………..…….………..…...................……….….....$9.95
Profit: $9.95 - $8.50 = $1.45
(12 X 100 X $1.45) = $1,740 or 17.06% in 10 trading days.
If you are uncertain about 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.
