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.
Trade Alert - (SPY) - EXPIRATION AT MAX PROFIT
EXPIRATION of the S&P 500 (SPY) June 2022 $440-$450 in-the-money vertical bear put spread at $10.00
Closing Trade
6-17-2022
expiration date: June 17, 2022
Portfolio weighting: 10%
Number of Contracts = 12 contracts
This is one of those trades that worked so well I am kicking myself for not doing twice the size. The (SPY) collapsed an astonishing $40 after we put it on.
Just to be clear, this position does not expire at max profit until Friday, June 17 at the 4:00 pmn EST close. But with seven positions expiring at the same time, I am going to start rolling out the accounting now, so you don’t get overwhelmed.
I think it is safe to call this one a win. As a result, you get to take home $1,320 or 12.36% in 14 trading days.
Well done, and on to the next trade.
You don’t have to do anything with this expiration.
Your broker will automatically use your long position to cover your short position, canceling out the total holdings.
The entire profit will be credited to your account on Monday morning, June 20 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
This was a bet that the S&P 500 (SPY) would not trade above $440.00 by the June 17 options expiration day in 14 trading days.
This was a very short-term options play only.
Here are the specific trades you need to close out this position:
Expiration of 12 June 2022 (SPY) $450 puts at……....…….……$70.63
Expiration of short 12 June 2022 (SPY) $440 puts at………….$60.63
Net Proceeds:……………………...........…….………..………….….....$10.00
Profit: $10.00 - $8.90 = $1.10
(12 X 100 X $1.10) = $1,320 or 12.36% in 14 trading days.
