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) October $85-$90 in-the-money vertical Bull Call spread at $5.00
Closing Trade
10-21-2022
expiration date: October 21, 2022
Number of Contracts = 25 contracts
We have the good fortune to have four options positions expiring at their maximum profit points at 4:00 PM on Friday, October 21. So you don’t get overwhelmed by getting four trade alerts at once, I will start feeding them out now.
This position represents a roll down from a previous position with high strike prices. As a result, you get to break even on the two positions. That’s how you manage risk in collapsing markets.
As a result, you get to take home on this leg $1,500 or 13.64% in 6 trading days. Well done and on to the next trade.
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 Monday morning, October 24 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. Not only that, with rocketing interest rates, we are just entering the golden age of the banking sector.
I believe that massive government borrowing and spending will drive US interest rates up through the roof. Banks love high-interest rates because they vastly improve profit margins.
To learn more about the company, please visit their website at https://www.jpmorganchase.com.
This was a bet that JP Morgan would not fall below $90 by the October 21options expiration in 6 trading days.
Here are the specific trades you need to close this position:
EXPIRATION of long 25 October 2022 (JPM) $85 calls at……..……$22.68
EXPIRATION of short 25 October 2022 (JPM) $90 calls at…......…$17.68
Net Proceeds:………………………….………..………......................…........$5.00
Profit: $5.00 - $4.40 = $0.60
(25 X 100 X $0.60) = $1,500 or 13.64% in 6 trading days.
