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 - Lam Research Corporation (LRCX) – TAKE PROFITS
SELL Lam Research Corporation (LRCX) September 2024 $720-$730 in-the-money vertical BULL CALL spread at $9.65
Closing Trade
8-15-2024
expiration date: September 20, 2024
Portfolio weighting: 10%
Number of Contracts = 12 contracts
I am taking profits in my bull call spread LRCX after the underlying stock popped over 8% in less than 3 trading days.
My position was quite aggressive so I will be awarded a handsome profit.
I also said that I thought Micron and AMD would do well and these 2 stocks have skyrocketed this week.
I was absolutely correct on my call that tech would take off this week.
Well done and on to the next trade.
Here are the specific trades you need to exit this position:
Sell to Close 12 September 2024 (LRCX) $720 calls at……….…$172.30
Buy to Close 12 September 2024 (LRCX) $730 calls at………….$162.65
Net Proceeds:…………….....………..…….………..……........................$9.65
Profit: $9.65 - $8 = $1.65
(12 X 100 X $1.65) = $1,980 or 20.63%
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.