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) – TAKE PROFITS
SELL – Micron Technology, Inc. (MU) June 2024 $117-$122 in-the-money vertical BULL CALL spread at $4.98
Closing Trade
6-12-2024
expiration date: June 21, 2024
Portfolio weighting: 10%
Number of Contracts = 24 contracts
Micron is another chip company at the heart of generative AI infrastructure and I was inclined on a recent dip of over 2.5% to execute a bull call spread on MU.
The underlying stock of MU has performed great after I executed this trade.
The low inflation print today has lifted tech stocks and MU is up over 3% today and I am cashing in right now.
There is ample demand for AI chips and playing this through one of the names like AMD or Nvidia is something that would make sense.
Chip stocks are even doing better than software stocks lately.
I am going with MU in the short term and as we exit earnings season, I believe we should hear many positive things coming up about AI chips in 2024.
This chip stock is a solid buy-the-dip candidate. Don’t miss out.
Here are the specific trades you need to exit this position:
Sell to Close 24 June 2024 (MU) $117 calls at………….………$23.10
Buy to Close 24 June 2024 (MU) $122 calls at…….…...........$18.12
Net Proceeds:……………………..…….………..……......................$4.98
Profit: $4.98 - $4.20 = $0.78
(24 X 100 X $0.78) = $1,872 or 18.58%
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.
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.