Trade Alert - (JPM) December 17, 2021 - EXPIRATION AT MAX PROFIT
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 - (JPM) – EXPIRATION AT MAX PROFIT
EXPIRATION of the JP Morgan (JPM) December 2021 $148-$152.50 in-the-money vertical Bull Call spread at $4.50
Trade Date: 12-17-2021
Expiration Date: December 17, 2021
Portfolio weighting: 10%
Number of Contracts = 26 contracts
We have an abundance of riches this month once again!
I am going to run the P&L on this position now, so I don’t overwhelm you, and my staff, with three closing trade alerts at today’s close.
As a result, you get to take home $1,820, or 18.42% in 15 trading days.
Well done and on to the next trade!
I think it is therefore safe to call this position a win, even though the actual December 17 quadruple witching options expiration is not until today at 4:15 PM EST. We are now an eye-popping $8.92, or 6.0% above the lower strike price.
We are so far in the money that we have an ample cushion going into expiration.
It helped that we caught the top of the move in the Volatility Index (VIX) at a $25-$29 top when we added this position. Today the (VIX) is only at $20.00.
Therefore, we get to take home the maximum profit in this position, such is the magic of vertical bull call debit spreads.
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 December 20 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
(JPM) is the class act in the global banking sector, and CEO Jamie Diamond is the best CEO in the country.
I believe that massive government borrowing, and spending will drive US interest rates up through the roof and the value of the US dollar (UUP) down. Banks love high-interest rates because they vastly improve profit margins.
This was a bet that JP Morgan (JPM) would not fall below $152.50 by the December 17 option expiration day in 15 trading days.
Here is the specific accounting you need to close out this position:
EXPIRATION of Buy 26 December 2021 (JPM) $148 calls at…...............$8.92
EXPIRATION of Sell short 26 December 2021 (JPM) $152.50 calls at....$4.42
Net proceeds:……………………..…….………............................………….….....$4.50
Profit: $4.50 - $3.80 = $0.70
(26 X 100 X $0.70) = $1,820 or 18.42% in 15 trading days.
