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 - (TLT)- BUY
Buy the iShares Barclays 20+ Year Treasury Bond Fund (TLT) August, 2015 $125-$128 in-the-money vertical bear put spread at $2.60 or best
Opening Trade
7-27-2015
expiration date: August 21, 2015
Portfolio weighting: 10%
Number of Contracts = 38 contracts
You can pay all the way up to $2.75 for this spread and it still makes sense.
If you can?t do the options, buy the ProShares Ultra Short Treasury ETF (TBT) for a five-point run.
The complete breakdown in junk bonds (JNK), (HYG) proves that all is not well in bond land.
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 38 August, 2015 (TLT) $128 Puts at?????$6.80
Sell short 38 August, 2015 (TLT) $125 Puts at..?$4.20
Net Cost:??????????????????.....$2.60
Potential Profit: $3.00 - $2.60 = $0.40
(38 X 100 X $0.40) = $1,520 or 1.52% profit for the notional $100,000 portfolio.
