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 - (META) – TAKE PROFITS
SELL the (META) August 2024 $410-$430 vertical BULL CALL spread at $19.80 or best
Closing Trade
8-7-2024
expiration date: August 16, 2024
Portfolio weighting: 10%
Number of Contracts = 6 contracts
Meta shares have just rocketed $56 off the Monday low. As a result, we now have 95% of the maximum potential profit in hand. The risk/reward of continuing is no longer favorable. In this market you take the 95% profit.
Therefore, I am selling the (META) August 2024 $410-$430 vertical BULL CALL spread at $19.80 or best.
As a result, you get to take home $1,980 or 20% in 2 trading days. Well done and on to the net trade.
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.
Meta, originally founded by Mark Zuckerberg as Facebook in 2004, is the world’s preeminent social media company. It owns and operates Facebook, Instagram, Threads, among other products and services. Meta ranks among the largest American information technology companies. If you haven’t heard of Meta, you’ve been living in a cave for the last 20 years.
This is a bet that the (META) will not fall below $330.00 by the August 16 option expiration in 9 trading days. It is also a bet that (META) does not break below the 200-day moving average at $372, some $60, or 13.67% lower, where it has huge support.
Here are the specific trades you need to exit this position:
Sell 6 August 2024 (META) $410 calls at………….…….............…$99.00
Buy to cover short 6 August 2024 (META) $430 calls at…………$79.20
Net Proceeds:……………….….………..………….…...........................$19.80
Profit: $19.80 - $16.50 = $3.30
(6 X 100 X $3.30) = $1,980 or 20% in 2 trading days.
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of Interactive Brokers.
If you are uncertain on how to execute an options spread, please watch my training video on “How to Execute a Vertical Bull Call Spread” by clicking here at
http://www.madhedgefundtrader.com/ltt-vbpds/
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.
