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 - Netflix, Inc. (NFLX) – EXPIRATION AT MAX PROFIT
EXPIRATION AT MAX PROFIT of Netflix, Inc. (NFLX) January 2022 $570-$575 in-the-money vertical BEAR PUT spread at $5.00
Closing Trade
1-21-2022
expiration date: January 21, 2022
Portfolio weighting: 10%
Number of Contracts = 25 contracts
NFLX shares crashed upon news of slowing growth.
This trade was a homerun. Technical charts look awful in the Nasdaq and we move on looking for a bottom.
This is definitely a period where tech rallies need to be sold. The Fed hasn’t signaled anything other than accelerating the move to increase rates which is always a bad sign for technology 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 January 24 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
We are entering the golden age of banking, which could last a decade, for the following reasons:
Here are the specific trades you need to execute this position:
Expiration of 25 January 2022 (NFLX) $575 puts at………….………$185.00
Expiration of 25 January 2022 (NFLX) $570 puts at……........…….$180.00
Net Proceeds:……………………..…….………..…..............................….....$5.00
Max Profit: $5 - $4.20 = $.80
(25 X 100 X $.80) = $2,000 or 19.04% in 9 days
