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) – TAKE PROFITS
SELL Invesco QQQ Trust (QQQ) March 2022 $365-375 in-the-money vertical BEAR PUT spread at $9.90
Closing Trade
3-8-2022
expiration date: March 18, 2022
Portfolio weighting: 10%
Number of Contracts = 12 contracts
Whispers of some agreements in the Ukraine Russian war will take profits here on my Nasdaq ETF (QQQ) short. This was another home run as we capitalized off the geopolitical conflict.
Good job and on to the next trade.
Here are the specific trades you need to exit this position:
Sell to Close 12 March 2022 (QQQ) $375 puts at….………$44.90
Buy to Close 12 March 2022 (QQQ) $365 puts at………….$35.00
Net Proceeds:…………………............…..…….…….…..…….....$9.90
Profit: $9.90 - $8.40 = $1.50
(12 X 100 X $1.50) = $1,800 or 16.7%
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.
