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.
Trade Alert - (NVDA) – EXPIRATION AT MAX PROFIT
EXPIRATION of the NVIDIA (NVDA) July 2022 $120-$130 in-the-money vertical Bull Call spread at $10.00 or best
Closing Trade
7-15-2022
expiration date: expiration date: July 15, 2022
Portfolio weighting: 10%
Number of Contracts = 12 contracts
We have yet another home run on the long side with the Friday expiration. (NVDA) is now trading an amazing $23.72 away from our nearest $130 strike price. Time to ring the cash register once again.
I guess others didn’t get the memo that front month deep in-the-money vertical bill call spreads are the way to play this kind of treacherous up-and-down market. Have the courage to execute these on a major down day and you have a license to print money.
Just to be clear, this position does not expire at max profit until the 4:00 EST close today. But with five positions expiring at the same time, I'm rolling out the accounting now so you don’t get overwhelmed.
I think it is safe to call this one a win. As a result, you get to take home $1,920 or 17.64% in 21 trading days.
Well done, and on to the next trade.
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, July 18 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
NVIDIA is the preeminent manufacturer of high-end graphics cards. You probably have their Geforce card in your computer. They are used for high-end PCs, artificial intelligence, and bitcoin mining.
This was a bet that NVIDIA (NVDA) would not fall below $130 by the July 15 options expiration day in 21 trading days, a decline of 27%. For more about (NVDA), please click here for their website.
Here is the specific accounting you need to close out this position:
Expiration of 12 July 2022 (NVDA) $120 calls at………......…$33.72
Expiration of short 12 July 2022 (NVDA) $130 calls at........$23.72
Net Proceeds:…………………….......…….………..……......…….…$10.00
Profit: $10.00 - $8.40 = $1.60
(12 X 100 X $1.60) = $1,920 or 17.64% in 21 trading days.
