Trade Alert – (MSTR) June 20, 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.

 

 

Trade Alert – (MSTR) – EXPIRATION AT MAX PROFIT

EXPIRATION of the MicroStrategy (MSTR) June 2025 $330-$340 in-the-money vertical bull call debit spread at $10.00

 

Closing Trade

6-20-2025

expiration date: June 20, 2025

Portfolio weighting: 10% weighting

Number of Contracts = 13 contracts

Just to be clear, this position does not expire until 4:15 PM on Friday, June 20.

Like all successful trades, this one looks stupidly cautious with 20:20 hindsight and (MSTR) trading at $369.03. That puts it at a gob-smacking $29.03 or 8.54% above the nearest $340 strike price.

MicroStrategy is a highly leveraged long play on Bitcoin. As it turned out, Bitcoin has been dead in the water for the past month, enabling us to reach maximum profit. We will be coming back to this trade in the future, the next time (MSTR) has an extreme move when option implied volatility goes to triple digits.

As a result, $1,950 or 17.67% 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, June 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.

This was a bet that MicroStrategy would not fall below $340 by the June 20 option expiration in 22 trading days.

Here are the specific trades you need to close out this position:

EXPIRATION of 13 June 2025 (MSTR) $330 calls at…………………..$39.03

EXPIRATION of short 13 June 2025 (MSTR) $340 calls at…………..$29.03

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

Profit: $10.00 – $8.50 = $1.50

(13 X 100 X $1.50) = $1,950 or 17.67% in 22 trading days