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. Read more
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. Read more
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. Read more
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. Read more
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. Read more
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. Read more
Trade Alert - (AMZN) - EXPIRATION
EXPIRATION of the Amazon (AMZN) March 2020 $1,350-$1,400 in-the-money vertical BULL CALL spread at $50.00 or best
Closing Trade
3-20-2019
expiration date: March 20, 2019
Portfolio weighting: 10%
Number of Contracts = 2 contracts
The net effect of the Coronavirus is to immediately drive a much larger share of commerce online, with Amazon taking the lion’s share. It is also the only place where you can buy a ten-pound bag of rice. The legacy stores are all out of it.
With the Volatility Index (VIX) then at an incredible $78, the risk/reward for a very deep in-the-money vertical call spread on the highest quality names was very favorable.
As a result, the Amazon (AMZN) March 2020 $1,350-$1,400 in-the-money vertical BULL CALL spread expired at its maximum potential value of $50.00.
The profit should be deposited into your account on Monday and the margin freed up. If it isn’t, get on the phone with your broker immediately.
I believed that Amazon (AMZN) shares were oversold in the extreme, and that there was some nice cherry-picking to be had. This is a stock that you want to hide behind the radiator and keep forever.
This was a bet that Amazon shares would NOT fall below $1,400 by the March 20 option expiration date in 5 trading days. In other words, it was a bet that (AMZN) wouldn’t fall by more than 313 points from the day I sent out the trade alert. Yes, this was 32% very deep-in-the-money call spread with only a week until expiration.
Here are the specific trades you need to close out this position:
Expiration of 2 March 2020 (AMZN) $1,350 calls at..……$590.90
Expiration of 2 March 2020 (AMZN) $1,400 calls at....….$540.90
Net Proceeds:………………………..........….…………..…….….....$50.00
Profit: $50.00 - $42.00 = $8.00
(2 X 100 X $8.00) = $1,600 or 19.05% in 5 trading days.
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. Read more
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. Read more
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. Read more