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 - (VST) – Expiration
EXPIRATION of the Vistra Energy (VST) February 2025 $100-$110 in-the-money vertical Bull Call debit spread at $10.00
Closing Trade
2-21-2025
expiration date: February 21, 2025
Portfolio weighting: 10% weighting
Number of Contracts = 12 contracts
I am sending this trade alert out early so I don’t overwhelm you with too many alerts at the close tomorrow.
Since I sent out this trade alert on January 28, (VST) shares have risen a ballistic $57.66, or 52% above the nearest strike price. My bet that the euphoria would continue into inauguration day proved correct. Just remember that this position does not expire until after the close at 4:15 PM EST tomorrow, February 21.
As a result, you get to take home $1,200 or 11.11% in 18 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, February 24, and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
The flight of money right now is from small, undercapitalized, and questionable to large, overcapitalized, and rock-solid balance sheets.
Vistra recently received permission from the Nuclear Regulatory Commission Comanche Peak, a two-unit facility, which is the third of Vistra's four nuclear plants, to receive its license extension from the NRC. Comanche Peak units 1 and 2 can now operate through 2050 and 2053, respectively.
The company's Beaver Valley Nuclear Power Plant units 1 and 2 in Pennsylvania are licensed through 2036 and 2047, and Davis-Besse in Ohio is licensed through 2037. Perry Nuclear Power Plant in Ohio filed its application for renewal in 2023 and is currently in the NRC review process.
To learn more about Vistra Energy, please visit their website at https://vistracorp.com
This was a bet that Vistra Energy would not fall below $110 by the February 21 option expiration in 18 trading days.
Here is the specific accounting you need to exit this position:
Expiration of 12 February 2025 (VST) $100 calls at………….……..…$67.66
Expiration of 12 short February 2025 (VST) $110 calls at……………$57.66
Net Proceeds:………………….………………….…..………......................…$10.00
Profit: $10.00 - $9.00 = $1.00
(12 X 100 X $1.00) = $1,200 or 11.11% in 18 days.
