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 - (CRM) – TAKE PROFITS
SELL the Salesforce Inc. (CRM) December 2023 $185-$195 in-the-money vertical Bull Call spread at $9.97 or best
Closing Trade
12-1-2023
expiration date: December 15, 2023
Portfolio weighting: 10%
Number of Contracts = 12 contracts
There is nothing like a 19% move in three days in a stock I own to get my juices flowing. But with 97.85% of the maximum profit in hand, I am going to take the money and run.
The risk/reward of continuing is no longer favorable. Better to raise cash to pour it into another new position.
Since I am expecting a Goldilocks global economy in 2024, I am looking for the best plays to profit here. At the top of the list is Salesforce Inc, the top cloud business in the industry. If you want to move your business online, you pretty much have to go through Salesforce, as most Fortune 500 companies already have.
I am therefore selling the Salesforce (CRM) December 2023 $185-$195 in-the-money vertical Bull Call spread at $9.97 or best.
DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.
Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and lower your offer by 2 cents with a second order.
Salesforce, Inc. is an American cloud-based software company headquartered in San Francisco, CA. It provides Customer Relationship Management (CRM) software and applications focused on sales, customer service, marketing automation, e-commerce, analytics, and applications development
This was a bet that Salesforce (CRM) will not fall below $195 by the December 15 option expiration day in 10 trading days. For more about (CRM), please click here for their website.
Here are the specific trades you need to close out this position:
Sell 12 December 2023 (CRM) $185 calls at………….…..............……$76.00
Buy to cover short 12 December 2023 (CRM) $195 calls at………....$66.03
Net Proceeds:……………………..…….……........................………….….....$9.97
Profit: $9.97 - $8.60 = $1.37
(12 X 100 X $1.37) = $1,644 or 13.74% in 10 trading days.
If you are uncertain on how to execute an options spread, please watch my training video by clicking here.
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.
Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
