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)- EXPIRATION
EXPIRATION of the S&P 500 SPDR?s (SPY) May, 2015 $213-$216 in-the-money vertical bear put spread at $3.00
Closing Trade: NOT FOR NEW SUBSCRIBERS
5-18-2015
expiration date: May 15, 2015
Portfolio weighting: 10%
Number of Contracts = 39 contracts
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It did turn out that the market continued to grind sideways and climb of a wall of worry, as I expected.
As a result, the S&P 500 SPDR?s (SPY) May, 2015 $213-$216 in-the-money vertical bear put spread expired on Friday at its maximum potential value of $3.00. Your profit on this position came to a healthy 18.1% in only eight trading days.
Way to Go!
This is the last of three put spread positions with the May 15 expiration, which I used to hedge downside risk for our sizeable long positions. All three turned out profitable.
It is unusual for a hedge fund manager to make money on both his long positions and his short positions at the same time. Few have such a precise market read.
However, we managed to pull it off this month, much to the delight of our readers and their pocketbooks.
The longs mostly went up and the shorts went down. It was a perfect world. This we managed to accomplish while most traders are barely making any money at all, grinding their teeth along the away.
Sometimes, 45 years worth of experience doing this stuff helps.
On to the next trade!
Here are the specific expiration values for the options in this position:
long 39 May, 2015 (SPY) $216 puts at?????$3.56
short 39 May, 2015 (SPY) $213 puts at???.?$0.56
Net expiration value:????????????.?.....$3.00
Profit: $3.00 - $2.54 = $0.46
(39 X 100 X $0.46) = $1,794 or 1.79% profit for the notional $100,000 portfolio.
