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 - (AAPL)- TAKE PROFITS
SELL the Apple (AAPL) August, 2015 $110-$115 in-the-money vertical bull call spread at $4.90 or best
Closing Trade
7-29-2015
expiration date: August 21, 2015
Portfolio weighting: 10%
Number of Contracts = 24 contracts
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Taking the 88% profit seems to be the good rule of thumb this summer. Hanging on the full 100% can lead to grief, and missed opportunities for the lack of dry powder.
So I am going to take profits here on the Apple (AAPL) August, 2015 $110-$115 in-the-money vertical bull call spread. At this price I am earning 88% of the maximum potential profit.
I have gained a nice 15.3% on the position in less than three weeks during awful market conditions.
This way, I can dive back in on the long side when Apple has one of its periodic dips. That seems increasingly frequent now that treacherous August and September are before us.
With this trade we managed to weather an earnings disappointment which too the shares down $11 in a heartbeat and still come out on top. Not bad.
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.
Here are the specific trades you need to take profits on this position:
Sell 24 August, 2015 (AAPL) $115 calls at?????$13.20
Buy to cover short 24 August, 2015 (AAPL) $120 calls at..?$8.30
Net Proceeds:??????????????????.....$4.90
Profit: $4.90 - $4.25 = $0.65
(24 X 100 X $0.65) = $1,560 or 1.56% profit for the notional $100,000 portfolio.
