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 - Intuit Inc. (INTU) – EXPIRATION AT MAX PROFIT
EXPIRATION of Intuit Inc. (INTU) February 2021 $340-$345 in-the-money vertical BULL call spread at $5.00
Closing Trade
2-19-2021
expiration date: February 19, 2021
Portfolio weighting: 10%
Number of Contracts = 22 contracts
This was a short-term trade that software company Intuit Inc. (INTU) would stay above the strike price of $345 by February 19th expiration and we are taking maximum profits.
You don’t have to do anything with this expiration.
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, February 22 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
Intuit's array of services work like a gem in the remote-work world that the pandemic thrust all of us into.
Intuit’s revenue and adjusted operating profit grew 13% and 17%, respectively, in fiscal 2020 to $7.68 billion and $2.18 billion. And fiscal Q1 2021 (the three months ended Oct. 31, 2020) revenue and adjusted operating income increased 14% and 159% from a year ago, the latter metric getting a big boost as Intuit's bottom line rebounds off of low profitability in the last couple years as the software company has invested heavily to promote growth.
Intuit continues to be a stalwart that connects the world to financial advice and should be a growth story for the foreseeable future.
With a trailing 12-month revenue of $7.8 billion, this is still a relatively small company when compared to the massive financial services industry it operates in, which is worth over a trillion dollars in annual spending in the U.S.
As of the end of October 2020, the company had $5.79 billion in cash, equivalents, and short-term investments, and only $2.36 billion in debt.
Even better, they acquired website Credit Karma and continues to plough ahead with their solid balance sheet.
If you don’t do options, buy and hold, my 3-year target is $650.
Here are the specific trades you need to close out this position:
Expiration of 22 February 2021 (INTU) $340 calls at………….………$74.30
Expiration of short 22 February 2021 (INTU) $345 calls at………….$69.30
Net Proceeds:……………………........................…….………..…......….....$5.00
Profit: $5 - $4.4 = $.60
(22 X 100 X $.60) = $1,320 or 13.6% in 29 days
