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) June 2022 $120-$130 in-the-money vertical Bull Call spread at $10.00
Closing Trade
6-17-2022
expiration date: expiration date: June 17, 2022
Portfolio weighting: 10%
Number of Contracts = 12 contracts
This is the last of my six expirations at max profit today. NVIDIA is now $35, or 27% away from the nearest strike price in this position. In retrospect, this was a total no-brainer of a trade.
Just to be clear, this position does not expire at max profit until the 4:00 pm EST close today. But with seven positions expiring at the same time, I am 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 $1,800 or 17.64% in 28 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, June 20 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 Geoforce 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 June 17 option expiration day in 28 trading days, a decline of 27%. For more about (NVDA) please click here for their website at https://www.nvidia.com/en-us/
Here are the specific trades you need to close out this position:
Expiration of 12 June 2022 (NVDA) $120 calls at……...........…$45.27
Expiration of short 12 June 2022 (NVDA) $130 calls at...........$35.27
Net Proceeds:……………………...…….….………................….….....$10.00
Profit: $10.00 - $8.50 = $1.50
(12 X 100 X $1.50) = $1,800 or 17.64% in 28 trading days.
