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) January 2023 $200 - $210 in-the-money vertical BULL CALL spread at $9.85
Closing Trade
1-11-2023
expiration date: January 20, 2023
Portfolio weighting: 10%
Number of Contracts = 11 contracts
We bought the dip when Microsoft (MSFT) was downgraded to neutral and a 5% selloff in the underlying shares transpired.
We are now taking profits and leaving a few pennies out there for the last guy.
Well done and on to the next trade.
The almighty CPI inflation comes out tomorrow and has the potential to move markets quite drastically.
Growth in Azure, MSFT's cloud computing business, may be slowing faster than investors anticipate because of a maturing market as well as a tougher economic environment.
I executed a mildly bullish short-term trade and it worked like clockwork.
The bear market rally will only go so far with recession worries mounting quickly.
The quickly dropping bond market has really invigorated the tech market in the short term.
Traders should be nimble and highly tactical in this volatile environment.
Here are the specific trades you need to exit this position:
Sell to Close 11 January 2023 (MSFT) $200 calls at………….………$32.25
Buy to Close 11 January 2023 (MSFT) $210 calls at……….........….$22.40
Net Proceeds:……………………..…….………..…..........................….....$9.85
Profit: $9.85-$8.80 = $1.05
(11 X 100 X $1.05) = $1,155 or 11.93%
If you are uncertain on 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.
