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 – TAKE PROFITS Meta Platforms, Inc. (META) June 2024 $440-$445 in-the-money vertical BULL CALL spread at $4.85
Closing Trade
6-5-2024
expiration date: June 21, 2024
Portfolio weighting: 10%
Number of Contracts = 24 contracts
We are harvesting yet another great tech trade with META surging the last few days from $455 and up another 2% this morning.
It is time to take profits here and the “bet on the Fed pivot” is back in full force and the Nasdaq going gangbusters in the short-term.
It’s hard to understand why the Fed has taken all rate hikes off the table and sold this narrative of multiple Fed cuts for quite some time. I don’t understand why they have put themselves in a box but it only means that the Nasdaq is off to the races and it is manifesting in shares like META today.
META has been a trade alert darling since 2022 and the ultimate buy-the-dip tech stock. You can’t go wrong with META for these short-term trades to the upside.
Well done and on to the next trade.
Here are the specific trades you need to execute this position:
Sell to Close 24 June 2024 (META) $440 calls at………….………$47.80
Buy to Close 24 June 2024 (META) $445 calls at…………..........$42.95
Net Proceeds:……………………..…….………..…....................….....$4.85
Profit: $4.85 - $4.10 = $.75
(24 X 100 X $.75) = $1,800 or 18.29%
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.
