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) – TAKE PROFITS
SELL NVIDIA Corporation (NVDA) February 2025 $99-$104 in-the-money vertical BULL CALL spread at $4.97
Closing Trade
2-14-2025
expiration date: February 21, 2025
Portfolio weighting: 10%
Number of Contracts = 24 contracts
Executed this trade when Nvidia (NVDA) was down 15%, and this trade has been a home run with the underlying stock trading at around $137 per share.
It’s probably fair to say I was too conservative here and could have really stepped into this name at that perfect buying opportunity.
That being said, I will settle for an 18.33% profit in one trade.
If readers wait until expiration, it should be fine because we are so deep in-the-money here. I am inclined to reload and buy the dip in Nvidia again.
The tech portfolio is staring at a great trading month.
Here are the specific trades you need to exit this position:
Sell to Close 24 February 2025 (NVDA) $99 calls at………$37.95
Buy to Close 24 February 2025 (NVDA) $104 calls at.…..$32.98
Net Proceeds:……………………..……..................……..…….....$4.97
Profit: $4.97 - $4.20 = $.77
(24 X 100 X $.77) = $1,848 or 18.33%
If you are uncertain about 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.