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 - NVIDIA Corporation (NVDA) – STOP LOSS
SELL NVIDIA Corporation (NVDA) August 2022 $165 - $170 in-the-money vertical BULL CALL spread at $2.95
Closing Trade
8-9-2022
expiration date: August 19, 2022
Portfolio weighting: 10%
Number of Contracts = 25 contract
NVIDIA Corporation (NVDA) dropped and we are cutting losses here.
Long term, this is a great buy-and-hold stock.
Here are the specific trades you need to exit this position:
Sell to Close 25 August 2022 (NVDA) $165 calls at………….………$6.65
Buy to Close 25 August 2022 (NVDA) $170 calls at………........….$3.70
Net Proceeds:……………………..…….………..….......................….....$2.95
Loss: $3.80 – $2.95= $.85
(25 X 100 X $.85) = $2,125 or 22.37%
If you are uncertain on how to execute an options spread, please watch my training video 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.
