Trade Alert - (UPS) November 20, 2020 - EXPIRATION

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 - (UPS) – EXPIRATION

EXPIRATION of the United Parcel Service (UPS) November 2020 $130-$140 in-the-money vertical Bull Call spread at $10.00

Closing Trade - NOT FOR NEW SUBSCRIBERS

11-20-2020

expiration date: November 20, 2020

Portfolio weighting: 10%

Number of Contracts = 13 contracts

Provided that United Parcel Service shares don’t drop more than $24.81 by the end of the day, you will realize the maximum potential profit in the United Parcel Service (UPS) November 2020 $130-$140 in-the-money vertical Bull Call spread at $10.00.

That means you earned $1,690 or 14.94% in 14 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 November 23 and the margin freed up.

Some firms charge you a modest $10 or $15 fee for performing this service.

The logic behind this trade was very simple.

When the US economy recovers, you suddenly have to move a lot more stuff. The overnight package delivery companies are another great beneficiary of this coming upsurge.

UPS is one of three overnight couriers, including FedEx (FDX) and the US Post Office, and only the former is publicly listed.

Note that I was clever here by picking an upper $140 strike. That is right where we got enormous technical support from a double bottom on the charts that stretched back to June.

Stock players should keep the shares, which probably have a double in them over the next three years.

This was a bet that UPS (UPS) would not fall below $140 by the November 20 option expiration day in 14 trading days.

Here are the specific trades you need to exit this position:

Expiration of 13 November 2020 (UPS) $130 calls at…........…$34.81

Expiration of short 13 November 2020 (UPS) $140 calls at....$24.81

Net Proceeds:……............……………..…….………..………….….....$10.00

Profit: $10.00 - $8.70 = $1.30

(13 X 100 X $1.30) = $1,690 or 14.94% in 14 trading days.

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.