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.
Buy the Occidental Petroleum (OXY) February, 2015 $70-$75 in-the-money vertical call spread at $4.20 or best
Opening Trade
expiration date: February 20, 2015
Portfolio weighting: 10%
Number of Contracts: 24
I really wanted my first Trade Alert this year to be in the energy sector. It is a rare chance to buy top quality at bargain prices with bond type yields.
You can buy the Occidental Petroleum (OXY) February, 2015 $70-$75 in-
the-money vertical call spread anywhere within $4.00-$4.50 range and have a reasonable expectation of making money on this trade.
If you can't trade options, just buy (OXY) stock outright for the eye popping 3.80% dividend. You are getting nearly junk bond yields here with a potential 50% gain in the stock going forward.
If you are even more conservative, buy the energy basket ETF, the Energy Select Sector SPDR (XLE). Baskets always have lower volatility than single stocks.
A more detailed research piece is to follow.
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.
If the price of this spread has moved more than 5% by the time you receive this Trade Alert, don't chase it. Wait for the next one. There are plenty of fish in the sea.
Here are the specific trades you need to execute this position:
Buy 24 February, 2015 (OXY) $70 calls at...............$11.30
Sell short 24 February, 2015 (OXY) $75 calls at.........$7.10
Net Cost:.........................
(24 X 100 X $0.80) = $1,920 or 1.92% profit for the notional $100,000 portfolio.
