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 - (MSFT) – EXPIRATION AT MAX PROFIT
EXPIRATION of the Microsoft (MSFT) February 2024 $330-$340 in-the-money vertical Bull Call spread at $10.00
Closing Trade
2-16-2024
expiration date: February 16, 2024
Portfolio weighting: 10%
Number of Contracts = 12 contracts
With this trade, we really nailed the ballistic melt-up in Microsoft shares since January 8. This position is expiring at an eye-popping 22.06% in the money.
Just to be clear, this position does not expire until after the close on Friday, February 16. I’m sending this expiration alert out now, so I don’t overwhelm you with too many expirations at max profit in one day.
As a result, you get to take home $1,560, or 14.94% in 28 trading days. Well done and on to the next trade.
If you don’t do options, buy the stock. My target for (MSFT) this year is $450, up 20%. I expect (MSFT) to hit a new all-time high before yearend.
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, February 19 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.
(MSFT) is the new safe stock in the market, thanks to the accelerated growth of its Azure cloud business. It is an American multinational technology company headquartered in Redmond, WA. Microsoft's best-known software products are the Windows line of operating systems, the Microsoft 365 suite of productivity applications, and the Edge web browser.
Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 14 in the 2022 Fortune 500 rankings of the largest United States corporations by total revenue. It was the world's largest software by revenue as of 2022.
This was a bet that Microsoft (MSFT) would not fall below $340 by the February 16 option expiration day in 28 trading days.
For more about (MSFT) please click here for their website.
Here is the specific accounting you need to close out this position:
EXPIRATION of 14 February 2024 (MSFT) $330 calls at…....……$86.15
EXPIRATION of short 14 February 2024 (MSFT) $340 calls at….$76.15
Net Cost:………….………..…….………..………….……….…...................$10.00
Potential Profit: $10.00 - $8.70 = $1.30
(12 X 100 X $1.30) = $1,560 or 14.94% in 28 trading days.
