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 - Uber Technologies, Inc. (UBER) – TAKE PROFITS
SELL Uber Technologies, Inc. (UBER) June 2024 $57.50-$62.50 in-the-money vertical BULL CALL spread at $4.55
Closing Trade
6-5-2024
expiration date: June 21, 2024
Portfolio weighting: 10%
Number of Contracts = 24 contracts
Ever since we executed this position on May 9th it has gone against us.
So I’m thrilled that the last 2 days have delivered a sharp rally in UBER shares and we are able to exit the bull call spread with tidy profits.
I understand that we can’t always harvest maximum profits but sometimes you must take what the market gives you and this is exactly the case.
Staring at red can sometimes be defeating but my forecast that traders will bet on the Fed pivot is coming to fruition and boosting underlying shares of companies like UBER.
We will reallocate the proceeds into a different tech position.
Here are the specific trades you need to exit this position:
Sell to Close 24 June 2024 (UBER) $57.50 calls at………….………$8.55
Buy to Close 24 June 2024 (UBER) $62.50 calls at………….........$4.00
Net Proceeds:……………………..…….………..……............................$4.55
Profit: $4.55 - $4.15 = $0.40
(24 X 100 X $0.40) = $960 or 9.64% in 27 days.
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of Interactive Brokers.
If you are uncertain on how to execute an options spread, please watch my training video on “How to Execute a Vertical Bull Call Spread” by clicking here at
http://www.madhedgefundtrader.com/ltt-vbpds/
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.
