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) – EXPIRATION AT MAX PROFIT
EXPIRATION of the Goldman Sachs (GS) November 2021 $330-$350 vertical bull call spread at $20.00
Closing Trade
11-17-2021
expiration date: November 19, 2021
Portfolio weighting: 10%
Number of Contracts = 6 contracts
We have an abundance of riches this month!
I am going to run the P&L on this position now, so I don’t overwhelm you, and my staff, with a record ten closing trade alerts at the Friday close.
My bet that interest rates would soar, taking financial stocks with them, has proved wildly successful.
I think it is therefore safe to call this position a win, even though the actual November 19 options expiration is not until Friday at 4:15 PM EST.
We are so far in the money that we have an ample cushion going into expiration.
Since we added this position, shares of Goldman Sachs (GS) have rocketed by $50.00. That is $75 from the nearest $350.00 strike price for this position.
It also helped that we caught the top of the move in the Volatility Index (VIX) at a $25-$29 top when we added this position. Today the (VIX) is only at $16.
Therefore, we get to take home the maximum profit in this position, such is the magic of vertical bull call debit spreads. That means you get to take $2,100 or 21.21% in 35 trading days.
The wall of money is still there, and in fact, it is growing.
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 can’t do options, buy the stock on the next big dip. I expected Goldman Sachs to make it to $450 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.
With a rising interest rate trend now accelerating, broker stocks are entering an uptrend that could last for months, if not years.
The company just announced earnings and they couldn’t be more pristine.
This was a bet that Goldman will not trade below $350 by the November 19 option expiration day in 35 trading days.
Here is the specific accounting you need to close out this position:
EXPIRATION of 6 November 2021 (GS) $330 calls at…………..………$64.32
EXPIRATION of short 6 November 2021 (GS) $350 calls at………....$44.32
Net Proceeds:………..…….…………...............………………….……….......$20.00
Profit: $20.00 - $16.50 = $3.50
(6 X 100 X $3.50) = $2,100 or 21.21% in 35 trading days
