Trade Alert - (BA) November 15, 2019 - EXPIRATION-TAKE PROFITS
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 - (BA) – EXPIRATION
EXPIRATION of the Boeing (BA) November 2019 $300-$310 in-the-money vertical BULL CALL spread at $10.00
Closing Trade
11-15-2019
expiration date: November 15, 2019
Portfolio weighting: 10%
Number of Contracts = 11 contracts
The Boeing (BA) November 2019 $300-$310 in-the-money vertical BULL CALL spread is about to expire in a few hours at its maximum value of $10.00.
My bet proved accurate that the Boeing share collapse triggered by the extended grounding of its flagship 737 MAX aircraft was only temporary.
As a result, you have earned a profit of $1,375, or 14.28% in 18 trading days.
You don’t need to do anything. The margin should be freed up and the profit deposited in your account on Monday morning. I have to confess that having a market that goes up almost every day was definitely a big help for this trade.
This was a bet that Boeing shares would not fall below the $310 strike price by the November 15 options expiration date. It is $51.92 higher than that right now. That seems like a no brainer today. However, when I sent out this trade alert, readers were throwing up on their shoes about Boeing. That is the perfect time to enter a trade.
Here is how you close out this position:
EXPIRATION of 11 November 2019 (BA) $300 calls at….......…$61.92
EXPIRATION of short 11 November 2019 (BA) $310 calls at….$51.92
Net Cost:……………………..…….………..………….…........................$10.00
Profit: $10.00 - $8.75 = $1.25
(11 X 100 X $1.25) = $1,375 or 14.28% in 18 trading days.
