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 - Tesla, Inc. (TSLA) – SELL – TAKE PROFITS
SELL TAKE PROFITS Tesla, Inc. (TSLA) June 2022 $545-$570 in-the-money vertical BULL CALL spread at $24.75
Closing Trade
6-8-2022
expiration date: June 17, 2022
Portfolio weighting: 10%
Number of Contracts = 5 contracts
This was a tactical trade in EV automaker Tesla (TSLA) that the underlying TSLA stock would stay above $570 by June 17th and we are exiting here with the underlying stock close to $740 as TSLA has held up quite well in the short-term.
This is our second TSLA call spread that we have profited from lately.
TSLA shares have been quite volatile lately due to Founder Elon Musk’s spat with the Twitter board.
This has given us great entry points into TSLA because a Twitter purchase affects his financial position in TSLA.
The bear market rally continues and this nice reprieve in the NASDAQ gives us hope that the second half will be better than the first.
Here are the specific trades you need to execute this position:
Sell to Close 5 June 2022 (TSLA) $545 call at………….………$196.40
Buy to Close 5 June 2022 (TSLA) $570 call at………….$171.65
Net Proceeds:……………………..…….………..…….....$24.75
Profit: $24.75 - $20 = $4.75
(5 X 100 X $4.75) = $2,375 or 23.75%
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.
