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 - Meta Platforms, Inc. (META) – TAKE PROFITS
SELL Meta Platforms, Inc. (META) April 2024 $440-$445 in-the-money vertical BULL CALL spread at $4.98
Closing Trade
4-15-2024
expiration date: April 19, 2024
Portfolio weighting: 10%
Number of Contracts = 25 contracts
I executed a bull call spread when Meta (META) shares dipped by 5%.
The stock has performed exceptionally well in the face of geopolitical uncertainty.
Global events are causing bid drawdowns in tech stocks and META has been one of the few to trade sideways.
META will continue to be one of the buy-the-dip tech stocks as they are one of the leaders in the AI narrative that is driving the broader tech sector.
This stock should be one of the cornerstones of a tech portfolio and one of the leaders of generative AI.
Here are the specific trades you need to exit this position:
Sell to Close 25 April 2024 (META) $440 calls …….………$72.73
Buy to Open 25 April 2024 (META) $445 calls at………….$67.75
Net Proceeds:……………………..…….………..….............….....$4.98
Profit: $4.98 - $3.80 = $1.18
(25 X 100 X $1.18) = $2,950 or 31.10%
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of Interactive Brokers.
If you are uncertain on how to execute an options spread, please watch my training video on “How to Execute a Vertical Bull Call Spread” by clicking here at
http://www.madhedgefundtrader.com/ltt-vbpds/
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.