Trade Alert – (JPM) September 16, 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 – (JPM) – TAKE PROFITS

SELL the JP Morgan Chase (JPM) September 2025 $270-$280 in-the-money vertical Bull Call spread at $9.97

 

Closing Trade

9-16-2025

expiration date: September 19, 2025

Portfolio weighting: 10%

Number of Contracts = 12 contracts

This trade has been a total winner. Since we added it in August, JP Morgan shares have blasted out to a new all-time high.

Look at every banking and financial stock chart in the market, and they are all breaking out to the upside. It is clear that traders believe a Fed interest rate cut on September 17 is a sure thing. Banks and financials are among the biggest beneficiaries of falling interest rates.

However, I never miss an opportunity to derisk my portfolio for a few cents. The probability of a Fed rate cut on Wednesday is 97%, not 100%. If the Fed focuses on rising inflation instead of the jobs crash, we could get only a 25-basis point cut….or no cut at all. Stock markets would go into a tailspin.

I am therefore selling the JP Morgan Chase (JPM) September 2025 $270-$280 in-the-money vertical Bull Call spread at $9.97 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 you offer by a penny 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  $9.97, $9.96, $9.95, $9.94, and $9.93. You should get done on some or all of these.

This was a bet that JP Morgan would not fall below $280 by the September 19 option expiration day in 16 trading days.

For more about (JPM), please click here for their website.

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

Sell 12 September 2025 (JPM) $270 calls at………….……………..…$31.00

Buy to cover short 12 September 2025 (JPM) $280 calls at………$21.03

Net Proceeds:……………………..…….………..…………………..……………$9.97

Profit: $9.97 – $8.80 = $1.17

(12 X 100 X $1.17) = $1,404 or 13.29% in 13 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.