🎯 Take Profit Alert 4/17/25: Closing AMT Bull Put Spread with 90% Profit
Managing risk and locking in gains before expiration hits
Today, I’m closing my AMT bull put credit spread for a $1,095 profit, capturing over 90% of the maximum potential gain. Here's a full breakdown of the trade, and why now is the right time to exit.
🛠️ The Trade Structure
Strategy: Bull Put Credit Spread
Opened: Short Apr 17 $220 Put / Long Apr 17 $210 Put
Net Credit Collected: $4.05 per spread (or $405)
Risk on Trade: $10 wide spread – $4.05 credit = $5.95 ($595 max loss)
Maximum Profit Potential: $405
Position Size: 3 contracts
Total Max Gain: $1,215
Closed Today For: $120 debit
Realized Profit: $1,095 (approx. 90% of max gain)
🕒 Why I’m Closing It Now
Today is expiration day, and AMT is trading at $221.40, comfortably above the $220 short strike.
From a technical standpoint:
The trend remains bullish
Momentum is still strong, with positive MACD and a stochastic reading around 56—well below overbought
The price is up just 1.5% on the day, avoiding the kind of sharp move that would trigger caution
So why not let it expire worthless?
Because:
I've already captured 90.12% of the max gain
There’s minimal reward left, but risk still exists, including:
End-of-day reversals
Random news flow
Assignment risk
It's expiration day. There’s no reason to be a hero.
This is a classic example of asymmetric risk/reward working in my favor—and knowing when to step off the table.
🎯 Summary
In options trading, the exit is just as important as the entry. Taking profits when the bulk of the reward has been earned—and the remaining risk is unnecessary—is how I keep my edge. I don’t aim to be perfect. I aim to be consistent.
This was a well-executed trade based on trend alignment, favorable volatility, and disciplined risk management. More importantly, it’s a great reminder that locking in profits is not just smart—it’s part of the process.
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*Disclaimer: The examples in The Options Oracle are my opinion, not financial advice.