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 - (SPY) – EXPIRATION
EXPIRATION of the S&P 500 (SPY) June 2021 $430-$440 in-the-money vertical BEAR PUT spread at $10.00 or best
Closing Trade - NOT FOR NEW SUBSCRIBERS, YOUR TURN WILL COME
6-18-2021
expiration date: June 18, 2021
Portfolio weighting: 10%
Number of Contracts = 12 contracts
This was the best week to have short positions in the market since January, and we profited from a couple of them.
Our position in the S&P 500 (SPY) June 2021 $430-$440 in-the-money vertical BEAR PUT spread expired at its maximum value of $10.00 at the close today.
As a result, you get to take home $1,440, or 13.63% in 23 trading days. Well done and on to the next trade!
You don’t have to do anything with this expiration.
Your broker (are they still called that?) 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 April 19 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
Expiration of this final position takes me to a rare 100% cash position. At $21 the Volatility Index (VIX) is still too low to start adding risk again. You might as well just sit back and enjoy the summer weather.
This was a bet that the S&P 500 (SPY) will not trade above $430 by the June 18 option expiration day in 23 trading days. That was up 27 (SPY) points, or $2,000 Dow Average points from here.
Here are the specific trades you need to close out this position:
EXPIRATION of 12 June 2021 (SPY) $440 puts at………….………$27.08
EXPIRATION of short 12 June 2021 (SPY) $430 puts at………….$17.08
Net Proceeds:………………………….………..…...............……….….....$10.00
Potential Profit: $10.00 - $8.80 = $1.20
(12 X 100 X $1.20) = $1,440 or 13.63% in 23 trading days.
