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. This is your chance to ?look over? John Thomas? shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen.
Trade Alert - (SPY)
Buy the S&P 500 (SPY) October, 2014 $202-$205 in-the-money bear put spread at $2.66 or best
Opening Trade
9-29-2014
expiration date: October 17, 2014
Portfolio weighting: double from 10% to 20%
Number of Contracts = 38 contracts
You can buy this spread anywhere in a $2.60-$2.75 range and have a reasonable expectation of making money on this trade.
The ?ETF alternative to the (SPY) is (SDS) at market price.
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.
Keep in mind that these are ballpark prices only. 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, 2014 (SPY) $205 puts at?????$7.79
Sell short 38 October, 2014 (SPY) $202 puts at..??.$5.13
Net Cost:??????????????????.....$2.66
Potential Profit at expiration: $3.00 - $2.66 = $0.34
(38 X 100 X $0.34) = $1,292 or 1.30% profit for the notional $100,000 portfolio.
