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 - (M) - EXPIRATION
EXPIRATION of the Macy's (M) August 2019 $23-$25 in-the-money vertical BEAR PUT spread at $2.00
Closing Trade
8-16-2019
expiration date: August 16, 2019
Portfolio weighting: 10%
Number of Contracts = 57 contracts
The Macy's (M) August 2019 $23-$25 in-the-money vertical BEAR PUT spread is about to expire at its maximum value of $5.00. The massive selloff in the shares prompted by its horrific Q2 earnings made this a sure thing. The shares have sold off 22% since we added this bearish position.
As a result, you earned $1,482 or 20% in 7 trading days. The margin should be freed up and the profit deposited in your account on Monday morning.
This was a bet that the Macy’s (M) would not trade above $23.00 by the August 16 option expiration day in 7 trading days.
Expiration of 57 August 2019 (M) $25 puts at……….……$9.00
Expiration of short 57 August 2019 (M) $23 puts at…….$7.00
Net Proceeds:…………...……………….………..………….….....$2.00
Profit: $2.00 - $1.74 = $0.26
(57 X 100 X $0.26) = $1,482 or 20% in 7 trading days.
