Trade Alert - (SPY) October 18, 2021 - EXPIRATION AT MAX PROFIT
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 AT MAX PROFIT
EXPIRATION of the S&P 500 (SPY) October 2021 $410-$420 in-the-money vertical BULL CALL spread at $10.00
Closing Trade - NOT FOR NEW SUBSCRIBERS, YOUR TURN WILL COME
10-18-2021
expiration date: October 15, 2021
Portfolio weighting: 10%
Number of Contracts = 11 contracts
This is a position left over from Friday when the position expired at max profit.
My bet that interest rates would soar, taking financial stocks with them, has proved wildly successful. That has left us with a record seven positions that expire at max profit on Friday.
Since we added this position, shares of the S&P 500 (SPY) have rocketed by $20.00. That is $26 from the nearest $420.00 strike price for this position.
It also helped that we caught the top of the move in the Volatility Index (VIX) at a $25-$29 top when we added this position. Today, the (VIX) is only at $16.
Therefore, we get to take home the maximum profit in this position, such is the magic of vertical bull call debit spreads. That means you get to take home
The wall of money is still there, and in fact, it is growing.
Well done and on to the next trade!
This was a bet that the S&P 500 (SPY) would not fall below $420 by the October 15 option expiration day in 23 trading days.
Here is the specific accounting you need to close out this position:
EXPIRATION of 11 October 2021 (SPY) $410 calls at……..……..…$36.71
EXPIRATION of short 11 October 2021 (SPY) $420 calls at……...$26.71
Net Proceeds:………………………….……............…..……………..….....$10.00
Profit: $10.00 - $8.90 = $1.10
(11 X 100 X $1.10) = $1,210, or 12.35% in 23 trading days.
