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 - NVIDIA Corporation (NVDA) – Expiration
Expiration of the NVIDIA Corporation (NVDA) October 2024 $100-$105 in-the-money vertical BULL CALL spread at $5.00
Closing Trade – Not For New Subscribers
10-18-2024
expiration date: October 18, 2024
Portfolio weighting: 10%
Number of Contracts = 24 contracts
Nvidia has done nothing but elevate since I initiated this trade. The underlying stock is trading at $137 per share, and our upper strike is $105.
This trade was almost on cruise control as we used a brief dip to strap on a high-quality NVDA trade.
I was almost enticed to double up my position.
The news coming out of Nvidia is strong, and they basically cannot make enough AI GPUs to satisfy demand. This puts them in a strong strategic position, and I see the benefits in the price action.
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, October 21, and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
Here are the specific trades you need to exit this position:
Expiration of Open 24 October 2024 (NVDA) $100 calls at…….………$37.90
Expiration of Short 24 October 2024 (NVDA) 105 calls at……...........$32.90
Net Proceeds:……………………..……..………..……....................................$5.00
Profit: $5 - $4.15 = $0.85
(24 X 100 X $0.85) = $2,040 or 20.48% in 28 days
