Trade Alert - (JPM) May 12, 2025 - TAKE PROFITS - SELL
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) – TAKE PROFITS
SELL the JP Morgan Chase (JPM) May 2025 $190-$200 in-the-money vertical Bull Call debit spread at $9.98 or best
Closing Trade
5-12-2025
expiration date: May 16, 2025
Number of Contracts = 13 contracts
Since we added it 15 trading days ago, (JPM) has appreciated some $63, or 30.5% above the nearest $200 strike price. We also caught a nice drop in option implied volatility from 36% to 24%. This is what I promised you, and this is what I am delivering.
With 98% of the maximum potential profit, the risk/reward of continuing until the May 16 option expiration day is no longer favorable. Besides, I want to raise cash to take advantage of the many juicy short opportunities out there. Continuing with this position would be a needless waste of capital.
As a result, you get to take home 1,664 or 14.711% in 15 trading days. Well done, and on to the next trade.
I am therefore selling the JP Morgan Chase (JPM) May 2025 $190-$200 in-the-money vertical Bull Call debit spread at $9.98 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.
If you don’t want to sit in front or a screen all day or 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 $9.98, $9.96, $9.94, and $9.92. You should get done on some or all of these.
To learn more about the company, please visit their website at https://www.jpmorganchase.com.
This was a bet that JP Morgan Chase (JPM) would not fall below $200 by the May 16 option expiration in 19 trading days.
Here are the specific trades you need to exit this position:
Sell 13 May 2025 (JPM) $190 calls at…………...........………$63.00
Buy to cover short 13 May 2025 (JPM) $200 calls at..……$53.02
Net Proceeds:………………………….…..…..............................$9.98
Profit: $9.98 - $8.70 = $1.28
(13 X 100 X $1.28) = $1,664 or 14.711% in 15 trading days.
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.
