Trade Alert – (NET) June 23, 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.

 

Tech Alert – Cloudflare, Inc. (NET) – SELL TAKE PROFITS

SELL TAKE PROFITS Cloudflare, Inc. (NET) July 2025 $150-$155 in-the-money vertical BULL CALL spread at $4.85

 

Closing Trade

6-23-2025

expiration date: July 18, 2025

Portfolio weighting: 10%

Number of Contracts = 24 contracts

My bull call spread couldn’t have worked out better as Cloudflare (NET) explodes higher with the rest of the tech stocks on lower macro volatility.

I timed this one to perfection, and now we are taking juicy profits.

Cybersecurity stocks broke out today, and this is part of a larger trend of cyber software stocks doing well.

NET is a network service that improves website security, performance, and reliability by acting as a proxy between a website and its users. It offers various services like content delivery networks (CDNs), DDoS protection, and DNS security.

The subsector is outperforming the broader Nasdaq, and playing cyber software stocks is the right strategy in the short-term.

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

Sell to Close 24 July 2025 (NET) $150 calls at………….$34.90

Buy to Close 24 July 2025 (NET) $155 calls at………….$30.05

Net Proceeds:……………………..…….………..…………………$4.85

Profit: $4.85 – $4.20 = $.65

(24 X 100 X $.65) = $1,560 or 15.48%

 

 

 

 

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.