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.
Tech Alert - Meta Platforms, Inc. (META) – TAKE PROFITS
SELL TAKE PROFITS Meta Platforms, Inc. (META) July 2022 $150-$155 in-the-money vertical BULL CALL spread at $4.55
Closing Trade
7-12-2022
expiration date: July 15, 2022
Portfolio weighting: 10%
Number of Contracts = 25 contracts
This was a tactical trade in personal data selling company Meta Platforms, Inc. (META) that it would stay above $155 and after holding it for 7 days and withstanding elevated volatility, it’s time to take profits.
We are only accruing 55% of the maximum profit but I am comfortable with leaving the rest to the next guy.
The Nasdaq is and will still be highly volatile as the tech bubble is still deleveraging and by no means are we guaranteed a soft landing.
The tech markets are currently pricing in a soft recession, and I believe it will be more than that which will start to show up in downgraded earnings.
This means even though we have somewhat found dip buyers, the conditions entail us to be cautious.
We earned most of the profits through time decay showing us how rocky it is to get to the outcome we want.
Nobody should be owning META long term, it’s best days are behind them.
Here are the specific trades you need to execute this position:
Sell to Close 25 July 2022 (META) $150 calls at………….………$13.80
Buy to Close 25 July 2022 (META) $155 calls at……,..........…….$9.25
Net Proceeds:……………………..…….……….......................…….....$4.55
Profit: $4.55-$4 = $.55
(25 X 100 X $.55) = $1,375 or 13.75%
If you are uncertain on 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.
