Trade Alert - (TSLA) April 17, 2025 - 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.
EXPIRATION AT MAX PROFIT
EXPIRATION of the Tesla (TSLA) April 2025 $160-$170 in-the-money vertical bull call debit spread at $10.00
Closing Trade
4-17-2025
expiration date: April 17, 2025
Portfolio weighting: 10% weighting
Number of Contracts = 12 contracts
Because we have the good fortune of six positions expiring at max profit on the Thursday, April 17, option expiration day, I am going to start feeding these out now.
Like all successful trades, this one looks stupidly cautious with 20:20 hindsight and (TSLA) trading at $252.96. That puts us $92.95, or 54.62% above the nearest $170 strike price.
With this trade, you get to take home $1,440 or 13.63% in 20 trading days. Well done, and on to the next trade.
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, April 21, and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
The flight of money right now is from small, undercapitalized, and questionable to large, overcapitalized, and rock-solid balance sheets.
Here are the specific accounting you need to close out this position:
EXPIRATION of Buy 12 April 2025 (TSLA) $160 calls at……………...…$92.96
EXPIRATION of Sell short 12 April 2025 (TSLA) $170 calls at…..…….$82.96
Net Proceeds:………………………….……….…………………...........….........…$10.00
Profit: $10.00 - $8.80 = $1.20
(12 X 100 X $1.20) = $1,440 or 13.63% in 20 trading days
