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 - Pinterest, Inc. (PINS) – SELL – TAKE PROFITS
SELL – TAKE PROFITS Pinterest, Inc. (PINS) February 2023 $19-$23 in-the-money vertical BULL CALL spread at $3.60
Closing Trade
1-27-2022
expiration date: February 17, 2023
Portfolio weighting: 10%
Number of Contracts = 29 contracts
This was a short-term mildly bullish trade on social media company PINS that PINS would stay above $23.
We are exiting here for a modest profit.
PINS is definitely a buy-on-the-dip company and the share price has been performing quite well since July 2022.
I’d like to return to this trade once there is another pullback.
Any large dip should be bought in PINS.
Here are the specific trades you need to exit this position:
Sell to Close 29 February 2023 (PINS) $19 calls at………….………$8.35
Buy to Close 29 February 2023 (PINS) $23 calls at………........….$4.75
Net Proceeds:……………………..…….………..…......................….....$3.60
Profit: $3.60 - $3.40 = $.20
(29 X 100 X $.20) = $580 or 5.88%
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.
