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 - Invesco QQQ Trust (QQQ) – SELL – BREAK EVEN
SELL BREAK EVEN - Invesco QQQ Trust (QQQ) June 2021 $347-$352 in-the-money vertical BEAR put spread at $4.42
Closing Trade – WE STILL HAVE ONE OTHER QQQ PUT SPREAD OPEN
6-15-2021
expiration date: June 18, 2021
Portfolio weighting: 10%
Number of Contracts = 22 contracts
This was a short-term bet that Invesco QQQ Trust (QQQ) would stay BELOW $347 and we are exiting the position without a loss after the EFT QQQ’s relentless march higher put the position under pressure.
This slight dip is just enough to get us out at par.
It was all worth it because we profited on a slew of bullish positions the last few weeks. Now we can cut our QQQ position in half and will seek to exit the other QQQ June $345-$350 put spread which has lower strike prices.
Tech is entering the summer and appears to be in a “goldilocks” phase and I am inclined to execute from the long side from here.
This short-term trade went against us right away, but we exited orderly with this small dip in today’s shares after blistering inflation numbers this morning.
I still love the cash cow of tech like Google, Apple, Microsoft, and Facebook, and we have taken profits on GOOGL, AMZN, CRM, PYPL, COIN in the past 3 weeks taking our portfolio a leg up.
I still love technology and they are the long-term difference makers in the economy, but the sector is in the process of being rerated.
If you hold the ETF, keep it long-term.
Here are the specific trades you need to exit this position:
Sell to Close 22 June 2021 (QQQ) $352 puts at…….……$9.48
Buy to Close 22 June 2021 (QQQ) $347 puts at………….$5.06
Net Proceeds:………….......…………..…….………....…….....$4.42
Loss: $4.42 – $4.42 = $0.00
(22 X 100 X $.04) = $00 or 0.0%
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.