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.
Trade Alert - (GS) ? TAKE PROFITS
SELL the Goldman Sachs (GS) April, 2015 $175-$180 deep in-the-money vertical call spread at $4.99 or best
Closing Trade: NOT FOR NEW SUBSCRIBERS
4-15-2015
expiration date: April 17, 2015
Portfolio weighting: 10%
Number of Contracts = 23 contracts
With only two days to expiration, we have already milked this baby for all it is worth. If you slapped this trade on when I did two weeks ago, you have earned a blockbuster 14.4% profit on this position.
Therefore it is time to free up some capital and sell the Goldman Sachs (GS) April, 2015 $175-$180 deep in-the-money vertical call spread at $4.99 or best.
If you are a cheapskate and wish to hold on until the April 17 expiration to avoid paying the extra closing commission, that?s fine by me. The brokers already have enough yachts as it is.
I?ll probably roll forward this position up and out (high strike prices, longer maturity) in the next hour or two in order to front run Goldman?s Q1 earnings report, which comes out after the close on Thursday.
I am expecting humongous profits out of their sizeable European bond trading operation, thanks to the launch of Europe?s new aggressive quantitative easing program, now six weeks old.
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:
Sell 23 April, 2015 (GS) $175 calls at?????$23.00
Buy to cover short 23 April, 2015 (GS) $180 calls at..??.$18.01
Net Cost:??????????????????.....$4.99
Profit: $4.99 - $4.38 = $0.59
(23 X 100 X $0.59) = $1,357 or 1.36% profit for the notional $100,000 portfolio.
