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 - Palo Alto Networks, Inc. (PANW) – SELL – TAKE PROFITS
SELL TAKE PROFITS Palo Alto Networks, Inc. (PANW) March 2024 $225-$235 in-the-money vertical BULL CALL spread at $9.95
Closing Trade
3-1-2024
expiration date: March 15, 2024
Portfolio weighting: 10%
Number of Contracts = 12 contracts
We hit a home run with this position as PANW surged after a huge dip after a poor earnings report.
We are taking profits almost at the maximum.
Well done and on to the next trade.
Here are the specific trades you need to execute this position:
Sell to Close 12 March 2024 (PANW) $225 calls at………….………$75.00
Buy to Close 12 March 2024 (PANW) 235 calls at…………...........$65.05
Net Proceeds:……………………..…….………..……..............................$9.95
Potential Profit: $9.95 - $8.40 = $1.55
(12 X 100 X $1.55) = $1,860 or 18.45%
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.
