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 - (JPM) – EXPIRATION
EXPIRATION of the JP Morgan Chase (JPM) November 2024 $195-$205 in-the-money vertical Bull Call spread at $10.00
Closing Trade
11-15-2024
expiration date: November 15, 2024
Portfolio weighting: 10%
Number of Contracts = 12 contracts
This turned out to be my most successful election trade, with the shares of (JPM) up an eye-popping $42, or 20.49% above the nearest strike price. Election trades either go really right, or really wrong.
Just to be clear, this position does not expire until after the 4:00 PM close today Friday, November 15.
As a result, you get to take home $1,440 or 13.64% in 30 trading days. 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 18 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
The flight of money right now is from small, undercapitalized, and questionable to large, overcapitalized and rock solid.
JP Morgan’s blockbuster earnings report has blasted the stock to a new all-time high, dragging the rest of the financial sector with it.
Financials are back!
Increasingly, investors are not bothering to wait until after the election to commit the rest of their capital, they are buying stocks now. They don’t want to be left behind by the monster post-election rally. The October selloff proved to be only a 4.5% drawdown at the beginning of the month.
(JPM) is the top commercial bank in the US, with a market capitalization of $598 billion. They are also one of the most profitable. Yet they sport a price earnings multiple of only 11.7X. They have far and away one of the most sophisticated and conservative risk control procedures out there.
The Fed will certainly cut interest rates by 25 basis this December because it is already in the mail. I did a LEAPS on (JPM) last year and followers earned a handy 100% return in nine months. I like returning to wells that refresh me.
This was a bet that JP Morgan would not fall below $205 by the November 15 option expiration day. For more about (JPM) please click here for their website.
Here is the specific accounting you need to close out this position:
EXPIRATION Buy 12 November 2024 (JPM) $195 calls at………….....…$47.86
EXPIRATION Sell short 12 November 2024 (JPM) $205 calls at……....$37.86
Net Proceeds:……………………………….………..………….…........................$10.00
Profit: $10.00 - $8.80 = $1.20
(12 X 100 X $1.20) = $1,440 or 13.64% in 25 trading days.
