Trade Alert - (VST) December 20, 2024 - EXPIRATION AT MAX PROFITS
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 - (VST) – Expiration
EXPIRATION of the Vistra Energy (VST) December 2024 $115-$120 in-the-money vertical bull call debit spread at $5.00
Closing Trade
12-20-2024
expiration date: December 20, 2024
Portfolio weighting: 10% weighting
Number of Contracts = 25 contracts
Since I have a record ten positions expiring at max profit today, December 20 options expiration, I am going to start sending out the closing trade alerts so you don’t get overwhelmed.
Since I issued it 23 trading days ago, the shares have risen by 20.79% above the nearest $120 strike price.
Just to be clear, this position does not expire until after the close today, December 20.
As a result, you get to take home $1,750 or 16.28% in 23 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, December 23, 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.
There is a new theme in the post-election market. Falling interest rates are out, deregulation is in.
With my position in Cameco (CCJ) already at max profit, I am more than happy to take profits and roll the money into Vistra Corp. (VST).
With this position, I am maintaining my exposure to the nuclear renaissance, which will be unfolding over the next few years. The prospect of easing regulation in the energy sector in the coming years has put a turbocharger on this sector.
Vistra Corp. is one of the preeminent nuclear power plants in the United States and one of the most rapidly expanding, with four operating plants.
We also have an enormous advantage with this trade in that the options are sporting a sky-high 56% implied volatility.
Vistra recently received permission from the Nuclear Regulatory Commission Comanche Peak, a two-unit facility, is the third of Vistra's four nuclear plants to receive its license extension from the NRC. Comanche Peak units 1 and 2 can now operate through 2050 and 2053, respectively.
The company's Beaver Valley Nuclear Power Plant units 1 and in Pennsylvania are licensed through 2036 and 2047, and Davis-Besse in Ohio is licensed through 2037. Perry Nuclear Power Plant in Ohio filed its application for renewal in 2023 and is currently in the NRC review process.
With this trade, I am willing to bet that Vistra Corp. shares will not fall below $120 by the December 20 option expiration in 23 trading days.
To learn more about Vistra Energy, please their website at https://vistracorp.com
Here is the specific accounting you need to close out this position:
EXPIRATION of 25 December 2024 (VST) $115 calls at……….…....$29.89
EXPIRATION of short 25 December 2024 (VST) $120 calls at…….$24.89
Net Proceeds:…………………………………..……….……................………$5.00
Profit: $5.00 - $4.30 = $0.70
(25 X 100 X $0.70) = $1,750 or 16.28% in 23 trading days.
