As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price.
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Trade Alert - (EEM)- BUY
Buy the iShares MSCI Emerging Market ETF (EEM) October, 2016 $33.50-$36.50 in-the-money vertical bull call spread at $2.66 or best
Opening Trade
9-6-2016
Expiration Date: October 21, 2016
Portfolio Weighting: 10%
Number of Contracts = 38 contracts
This is a bet that (EEM) won?t trade below the $36.50 level by the October 21st expiration date in 34 trading days.
You can pay up to $2.75 and the trade still makes sense.
If you can?t do the options trade, then buy the ETF. I think it could double over the next three years.
To see how to enter this trade on your online platform, please look at the order ticket below, which I pulled off of optionshouse.
If you are uncertain on how to execute an options spread, please watch my training video on ?How to Execute a Bull Call Spread? by clicking here at https://www.madhedgefundtrader.com/ltt-executetradealerts/. You must be logged into your account to view the video.
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.
Here are the specific trades you need to execute this position:
Buy 38 October, 2016 (EEM) $33.50 calls at????.?.??$4.70
Sell short 38 October, 2016 (EEM) $36.50 calls at.????..$2.04
Net Cost:???????????????????........$2.66
Potential Profit: $3.00 - $2.66 = $0.34
(38 X 100 X $0.34) = $1,292 or 12.78% in 34 trading days
