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) – EXPIRATION
EXPIRATION of Microsoft Corporation (MSFT) July 2023 $312.50-$317.50 in-the-money vertical BULL CALL spread at $5.00
Closing Trade
7-21-2023
expiration date: July 21, 2023
Portfolio weighting: 10%
Number of Contracts = 24 contracts
This was a short-term aggressively bullish trade on AI firm Microsoft (MSFT) that MSFT would stay above $317.50 in 24 days.
At the moment of this writing, we have about 8% of cushion and will expire with max profits in a few hours.
Traders and investors should be buying the dip on any good tech stock, especially the AI stocks.
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, July 24 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
Earnings season could be a moment when traders take profits so we will get a chance to jump back into the best of technology.
Here are the specific trades you need to close out this position:
Expiration of 24 July 2023 (MSFT) $312.50 calls at………….………$32.70
Expiration of short 24 July 2023 (MSFT) $317.50 calls at………….$27.70
Net Proceeds:……………………..…….…..........................……..…….....$5.00
Profit: $5 - $4.10 = $.90
(24 X 100 X $.90) = $2,160 or 21.96% in 24 days
