Trade Alert – (MSTR) June 3, 2025 – TAKE PROFITS – SELL

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 – (MSTR) – TAKE PROFITS

Sell the MicroStrategy (MSTR) June 2025 $500-$510 in-the-money vertical bear put debit spread at $9.95 or best

 

Closing Trade

6-3-2025

expiration date: June 20, 2025

Portfolio weighting: 10% weighting

Number of Contracts = 13 contracts

My bets that Bitcoin would fall, MicroStrategy would fall, (MSTR) would fall relative to Bitcoin, and the implied volatility of its options would shrink all proved successful.

As a result, we have a big payday.

With 96.7% of the maximum potential profit in hand, the risk/reward of continuing is no longer favorable.

Therefore, I am selling the MicroStrategy (MSTR) June 2025 $500-$510 in-the-money vertical bear put debit spread at $9.95 or best.

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and lower your offer by 2 cents with a second order.

If you don’t want to sit in front of a screen all day or live in a foreign time zone when the US stock market is closed, such as Australia, or don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Cancelled orders overnight, like  $9.95, $9.93, $9.91, $9.89, and $9.87. You should get done on some or all of these.

This was a bet that MicroStrategy would not trade above $500 in 34 trading days.

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

Sell 13 June 2025 (MSTR) $510 puts at……………………….…$127.00

Buy to cover short 13 June 2025 (MSTR) $500 puts ……….$117.05

Net Proceeds:………………………….……………………………………$9.95

Profit: $9.95 – $8.50 = $1.45

(13 X 100 X $1.45) = $1,885 or 17.05% in 20 trading days

 

 

 

 

 

If you are uncertain about how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.