Trade Alert - (GS) March 4, 2025 - STOP LOSS

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 – STOP LOSS

Sell the Goldman Sachs (GS) March 2025 $580-$590 in-the-money vertical bull call debit spread at $5.40 or best

Closing Trade

3-4-2025

expiration date: March 21, 2025

Portfolio weighting: 10% weighting

Number of Contracts = 12 contracts

With the market in freefall, I am stepping out of this position. We have broken our upper strike price at $590, and the risk/reward is no longer favorable. This is the only pre-crash position I had, so we should easily make back this loss with my other seven positions.

Therefore, I am selling the Goldman Sachs (GS) March 2025 $580-$590 in-the-money vertical bull call debit spread at $5.40 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 10 cents with a second order.

If you live in a foreign time zone when the US stock market is closed, such as Australia, or don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Cancelled orders overnight, like $5.40, $5.30, $5.20, $5.10, and $5.10. You should get done on some or all of these.

This was a bet that (GS) will not drop below $590 by the March 21 option expiration in 26 trading days.

Here are the specific trades you need to exit this position:

Sell 12 March 2025 (GS) $580 calls at………………….…........$18.00

Buy to cover short 12 March 2025 (GS) $590 calls at……….$12.60

Net Proceeds:………………………….……….………………..............$5.40

Loss: $8.60 - $5.40 = $3.20

(12 X 100 X $3.20) = -$3,840

If you are uncertain about 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.

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