Portfolio Action: Take Your JPM Profits Now

JPMorgan Chase & Co. is up more than 2% today – and that move has turned our once-losing call trade into a winner.

The August $155 call expires next week, so let’s take our money off the table now.

Here’s what to do:

Sell-to-Close the JPM August 13, 2021 $155 Call for a limit price of $3.40.

Congrats on this profit – and now, onto today’s Profit Takeover

Your Top Questions – Answered

We added a new volatility trade to the Profit Takeover portfolio.

I gave you a bearish retail trade idea on Target…

And we dove deep into how to play one of the newest stocks to the market: Robinhood.

I’m throwing a lot of information at you here. And that’s why today, I’m taking a minute to answer some reader questions.

Remember – you can always ask me anything you want to know. You just need to use the “Ask Me Anything” page on the Profit Takeover website.

Every Friday, I take some of the best questions and answer them for all readers. And today, I’ve got three great ones…

We’re covering Microsoft’s IV, call spread profit targets, and I’m revealing my favorite blue-chip stock.

First up, Leonard has been taking a look at one of our favorite Profit Takeover indicators: implied volatility, or IV for short. And he noticed something interesting on Microsoft Corp. (Nasdaq:MSFT)

MSFT has been stuck in a range since earnings on July 27:

MSFT July 27-today, courtesy of stockcharts.com

You’re right – the IV is really cheap, but I frankly do not see a lot of volume here – and I wouldn’t go bearish on MSFT quite yet.

If I were to follow the pattern of other big-tech names, I would expect to see MSFT hit $300 before it actually sees a major decline.

Next up, Bob is talking call spreads – a great, low-risk option strategy that I’ve told you about before.

But Bob doesn’t want to know how to put a call spread on – he’s ready to take it off.

Actually, Bob, you can set targets in spreads the exact same way you would a call or a put. You just need to make sure you’re looking at the difference in premium between the two options.

Say you bought one call option for $5.00 and sold another for $3.00. Your total investment would have been $2.00. If you want to wait for a 100% return, then you need to wait until the difference between the options equals $4.00, not each leg separately.

And now for my favorite question of the week, we’re talking blue-chips. But I’ve got one in particular that I want to share…

Hey, I’ve got two sons – and when they were born, I opened investment accounts for both of them.

Both have Coca-Cola Co. (NYSE:KO) in their accounts on a DRIP (dividend reinvestment program), a program that reinvests cash dividends into additional shares.

People drink Coke, they drink Coke Zero, hell, they drink about everything KO sells. The demand is pretty sticky.

It’s not an exciting stock, but over the course of 10-20 years, 100 shares will make an investor a lot of money.

And I think that’s a great note to kick off the weekend on!

If you have any questions for me that weren’t answered here, then send me a message and you might just catch your name in next week’s issue.

Have a great weekend,

Mark Sebastian


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