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 - (WPM) – EXPIRATION
EXPIRATION of the Wheaton Precious Metals (WPM) April 2024 $39-$42 in-the-money vertical Bull Call debit spread at $3.00
Closing Trade
4-19-2024
expiration date: April 19, 2024
Portfolio weighting: 10%
Number of Contracts = 40 contracts
With this trade, we really nailed the ballistic melt-up in (WPM) shares this month. This position is expiring an earth-shaking 13% in the money.
Just to be clear, this position does not expire until after the close today.
As a result, you get to take home $1,600 or 15.38% in 12 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 April 19 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.
Wheaton Precious Metals Corp. is a multinational precious metals dividend streaming company, also known as a royalty trust. It indirectly produces over 26 million ounces a year via short-term options and contracts with mining companies all over the world, including Mexico, Portugal, The US, Chile, and Peru. It is, in effect, the best-leveraged play on silver out there.
To learn more about the operation of Wheaton Precious Metals Corp, please visit their site by clicking here.
Silver is a great industrial play and if you believe in the global economic recovery, you want to be loading the boat.
It is used in electronics and solar panels, which are about to get a big boost from the new president. Every Tesla requires 20 pounds of silver, which will increase more production next year by 40% from 1.3 million to 1.8 million units.
And yes, it is still used for jewelry, which gets bought more during economic recoveries.
Silver tends to lag gold, which has already started to move. When it plays catch-up it rises twice as fast as gold.
This is a bet that the Wheaton Precious Metals (WPM) will not fall below $42 by the April 19 option expiration day.
Here is the specific accounting you need to close out this position:
EXPIRATION of 40 April 2024 (WPM) $39 calls at………….….……$13.35
EXPIRATION of short 40 April 2024 (WPM) $42 calls at..………..$10.35
Net Cost:……………………..…….…………….…...................……….….....$3.00
Profit: $3.00 - $2.60 = $0.40
(40 X 100 X $0.40) = $1,600 or 15.38% in 12 trading days.
