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 - Micron Technology, Inc. (MU) – SELL STOP LOSS
SELL STOP LOSS Micron Technology, Inc. (MU) September 2024 $90-$95 in-the-money vertical BULL CALL spread at $2.90
Closing Trade
8-28-2024
expiration date: September 20, 2024
Portfolio weighting: 10%
Number of Contracts = 27 contracts
AI chip stock Supermicro SMCI is down 25% this morning causing the rest of the sub-sector to get dragged with it.
We have blown past our upper strike price and are cutting losses right now.
Here are the specific trades you need to exit this position:
Sell to Close 27 September 2024 (MU) $90 calls at………….………$8.00
Buy to Close 27 September 2024 (MU) 95 calls at………............….$5.10
Net Proceeds:……………………..…….………..……..............................$2.90
Loss: $3.70 -$2.90=$.80
(27 X 100 X $.80) = $2,160 or 21.62%
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.