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 $430-$440 in-the-money vertical bear put spread at $9.00 or best
Closing Trade
6-17-2022
expiration date: June 17, 2022
Portfolio weighting: 10%
Number of Contracts = 12 contracts
We have yet another home run on the short side with today’s expiration. The (SPY) is now trading an amazing $51 away from our nearest $430 strike price. Time to ring the cash register once again. I guess others didn’t get the memo that we are in a bear market.
Just to be clear, this position does not expire at max profit until the 4:00 pm EST close today. But with seven positions expiring at the same time, I am 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 $1,200 or 11.11% in 18 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 $430.00 by the June 17 options expiration day in 18 trading days.
Here are the specific trades you need to close out this position:
Expiration of Buy 12 June 2022 (SPY) $440 puts at….……$50.80
Expiration of Short 12 June 2022 (SPY) $430 puts at…….$40.80
Net Proceeds:…………………………..........……….……….….....$10.00
Profit: $10.00 - $9.00 = $1.00
(12 X 100 X $1.00) = $1,200 or 11.11% in 18 trading days.
