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) April 2023 $18-$21 in-the-money vertical BULL CALL spread at $2.95
Closing Trade
3-22-2023
expiration date: April 21, 2023
Portfolio weighting: 10%
Number of Contracts = 40 contracts
This was a wildly successful short-term bullish trade on social media company PINS that PINS would stay above $21 over the next month or so.
The contagion in the banking sector means the dollar is down, bonds are down, and the wider indexes not getting slaughtered means the conditions are there for a melt-up. And I was proven correct and PINS skyrocketed.
PINS is the ultimate active trading stock with a nice stock chart.
Buy it on the dip short-term unless something materially changes.
The recent market action in tech shares validates my overarching thesis of a stock pickers market. ETFs are dead.
Here are the specific trades you need to exit this position:
Sell to Close 40 April 2023 (PINS) $18 calls at………….………$9.90
Buy to Close 40 April 2023 (PINS) $21 calls at………........….$6.95
Net Proceeds:……………………..…….…….................…..…….....$2.95
Profit: $2.90 - $2.50 = $.40
(40 X 100 X $.40) = $1,600 or 20.00%
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.