Crypto Alert - (BLOK) November 19, 2021 - EXPIRATION AT MAX PROFIT
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 - (BLOK) – EXPIRATION AT MAX PROFIT
EXPIRATION of the Amplify Transformational Data Sharing ETF (BLOK) November 2021 $44-$47 in-the-money vertical Bull Call spread at $3.00
Closing Trade
11-19-2021
expiration date: November 19, 2021
Number of Contracts = 37 contract
This bull call spread will finish in the money at max profits if BLOK doesn’t drop over 20% today which won’t happen even if Bitcoin is quite volatile.
We’ve been doing really well trading BLOK and will use the next sell-off for another entry point into BLOK.
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, November 22 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
If you don’t do options, buy the stock. My target for (BLOK) this year is $70 which looks like it’s on pace to achieve.
My favorite crypto ETF is Amplify Transformational Data Sharing ETF (BLOK) which has morphed into one of the best crypto ETFs on the market since its inception.
(BLOK) is an actively managed ETF that seeks to provide total return by investing at least 80% of its net assets in equity securities of companies actively involved in the development and utilization of blockchain technologies. It trades right at net asset value, meaning you don’t have to pay any premium whatsoever.
(BLOK)’s biggest two positions are Bitcoin proxy MicroStrategy (MSTR) and a Canadian crypto mining company called Hut 8 Mining Corp (HUT), which has already tripled since June.
I have already shot out a MicroStrategy (MSTR) trade alert to new readers and am incredibly bullish on the company.
However, this ETF encompasses more than (MSTR) offering broader exposure to firms related to Bitcoin, crypto miners, and software companies that are heavily into crypto.
Hut 8 engages in industrial-scale bitcoin mining operations. It also owns and operates 38 BlockBoxes in Drumheller, Alberta, and 56 BlockBoxes in Medicine Hat, Alberta.
BlockBoxes are one of the most powerful and cost-effective bitcoin mining units available on the market.
(BLOK) doesn’t track bitcoin 1:1, but it does mimic the price action relatively closely albeit with less extreme swings.
Controlling excess volatility is something you should be happy about.
(BLOK) also has an expense ratio of only 0.71%, which isn’t too expensive for those who want to buy and hold the ETF and not trade the derivative.
Buying (BLOK) is most likely the best way to ensure safe trading under the framework of the SEC, but I understand others have a higher risk profile which is also welcome.
To understand more about the ETF (BLOK), click here.
Here are the specific trades you need to exit this position:
Expiration of 37 November 2021 (BLOK) $44 calls at………….………$14.70
Expiration of short 37 November 2021 (BLOK) $47 calls at………....$11.70
Net Proceeds:……………………..…….………..………...................….….....$3.00
Profit: $3 - $2.60 = $.40
(37 X 100 X $.40) = $1,480 or 15.38% in 29 days
