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 - Microsoft Corporation (MSFT) – SELL TAKE PROFITS
SELL TAKE PROFITS Microsoft Corporation (MSFT) February 2025 $390-$395 in-the-money vertical BULL CALL spread at $4.97
Closing Trade
2-19-2025
expiration date: February 21, 2025
Portfolio weighting: 10%
Number of Contracts = 25 contracts
I was aggressive in this bull call spread because I am confident about MSFT.
Taking profits in MSFT right here as the underlying stock MSFT is over 3% to around $411 per share with 3 trading days left. This was a grind, and MSFT held up long enough to take almost full profits. Well done, and on to the next trade.
This was an aggressive trade, and we did well to experience a surge higher after the trade was initiated, but the stock slowly inched down the last few days, and 3% isn’t the biggest cushion that we experienced in our recent ADBE or CRWD trade.
Here are the specific trades you need to exit this position:
Sell to Close 25 February 2025 (MSFT) $390 calls at………….$18.95
Buy to Close 25 February 2025 (MSFT) $395 calls at………….$13.98
Net Proceeds:……………………..…….………..…….........................$4.97
Profit: $4.97- $4 = $.97
(25 X 100 X $.97) = $2,425 or 24.25%
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.
