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 - (IWM)
Buy the Russell 2000 (IWM) September, 2015 $125-$128 in-the-money vertical bear put spread at $2.66 or best
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Opening Trade
8-19-2015
expiration date: September 18, 2015
Portfolio weighting: 10%
Number of Contracts = 37 contracts
You can pay up to $2.75 for this trade and it still makes sense. If you can?t deal in options, then buy the ProShares Short Russell 2000 ETF (RWM) for a quick trade (click here for a description of the fund at http://www.proshares.com/funds/rwm.html ).
Remember, the long-term trend is still up.
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 execute this position:
Buy 37 September, 2015 (IWM) $128 puts at????.??$8.00
Sell short 37 September, 2015 (IWM) $125 puts at????..?$5.34
Net Cost:?????????????????????.....$2.66
Potential Profit at expiration: $3.00 - $2.66 = $0.34
(37 X 100 X $0.34) = $1,258 or 1.26% profit for the notional $100,000 portfolio.
