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 - (AMZN) – EXPIRATION
EXPIRATION of the Amazon (AMZN) June 2024 $160-$170 in-the-money vertical Bull Call spread at $10.00
Closing Trade
6-21-2024
expiration date: June 21, 2024
Portfolio weighting: 10%
Number of Contracts = 12 contracts
I am sending this out now, so I don’t overwhelm you with too many Maximum profit trade alerts on expiration day tomorrow, Friday, June 21.
With this trade, we really nailed the ballistic gains in (AMZN) shares this month. This position is expiring a reasonable 8.64% in-the-money.
Just to be clear, this position does not expire until after the close on Friday, June 21.
As a result, you get to take home $840 or 9.68% in 11 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, June 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.
I love Amazon for the long term and if nothing else you should buy the stock. I think (AMZN) has another 30% of upside from here to $250 until yearend.
In the AI world, data is king and nobody has more data than Amazon. It has perhaps tracked half of all the sales of everything in the US for the past two decades. And if you want to do anything online, you have to execute through Amazon Web Services, the 800-pound gorilla of the hosting world (Mad Hedge does for cloud storage.)
As a result, Amazon along with NVIDIA should be among the top two big technology stocks in 2024. Until now, it has lagged. It is about to play catch up.
Oh and if you break it up, as the US government would love to do, the company becomes worth twice as much in pieces. Amazon is certainly the most undervalued AI play in the market.
This was a bet that Amazon would not fall below $170 by the June 21 option expiration in 11 trading days.
Here are the specific trades you need to execute this position:
EXPIRATION of 12 June 2024 (AMZN) $160 calls at……..….………$23.83
EXPIRATION of short 12 June 2024 (AMZN) $170 calls at…………$13.83
Net Proceeds:………………………….………..………….….......................$10.00
Profit: $10.00 - $9.30 = $0.70
(12 X 100 X $0.70) = $840 or 9.68% in 11 trading days.
