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) – STOP LOSS
SELL Micron Technology, Inc. (MU) December 2024 $92.50-$97.50 in-the-money vertical BULL CALL spread at $2.65
Closing Trade
11-15-2024
expiration date: December 20, 2024
Portfolio weighting: 10%
Number of Contracts = 24 contracts
Micron stock has been unbelievably volatile the last 5 days pulling back 13% after a huge surge up.
The post-election price action has been wild to say the very least.
The stock is good long term but the whipsaw on the charts means my upper strike price has been taken out and I am cutting losses here.
Here are the specific trades you need to execute this position:
Sell to Close 24 December 2024 (MU) $92.50 calls at….……$8.80
Sell to Close 24 December 2024 (MU) 97.50 calls at………….$6.15
Net Proceeds:……………………..….….………..……....................$2.65
Loss: $4.10 - $2.65 = $1.45
(24 X 100 X $1.45) = $3,480 or 35.37%
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.
