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 - (TLT) – TAKE PROFITS-EXPIRATION
EXPIRATION of the iShares Barclays 20+ Year Treasury Bond Fund (TLT) March 2019 $124-$126 in-the-money vertical BEAR PUT spread at $2.00
Closing Trade
3-15-2019
expiration date: March 15, 2019
Portfolio weighting: 10%
Number of Contracts = 57 contracts
I usually don’t run positions into expiration, but this one was a no brainer. There was no way that ten-year US Treasury bond yields were going under 2.50% by today. Next week, maybe, but not today.
There's nothing you need to do. The profit on this trade should be credited to your account and the margin freed up on Monday. Well done and on to the next trade.
Expiration of 57 March 2019 (TLT) $126 puts at……......…$4.25
Expiration of short 57 March 2019 (TLT) $124 puts at……$2.25
Net Cost:………………………….………..………….…..................$2.00
Profit: $2.00 - $1.80 = $0.20
(57 X 100 X $0.20) = $1,140 or 11.11% in 10 trading days.
If you are uncertain on how to execute an options spread, please watch my training video on How to Execute Vertical Call and Put Debit Spreads by clicking here.
