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)- TAKE PROFITS
Sell the S&P 500 SPDR?s (SPY) September, 2015 $171-$176 in-the-money vertical bull call spread at $4.92 or best
Closing Trade
9-3-2015
expiration date: September 18, 2015
Portfolio weighting: 10%
Number of Contracts = 24 contracts
A 19.7% profit in 8 trading days totally works for me.
Taking 91% of the maximum potential profit in this trade the day before the August nonfarm payroll report sounds like a really good idea.
Keep in mind that markets are still hyper sensitive to even the slightest disappointments these days. Dry powder is worth its weight in gold.
Keep in mind also that we have ?fast trading? conditions now, so the prices can be anywhere.
With the Volatility Index (VIX) trading down here at $23, off $9 in two days, I?ll take that as a ?SELL? signal for the (SPY).
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:
Sell 24 September, 2015 (SPY) $171 calls at????.??$26.40
Buy to cover short 24 September, 2015 (SPY) $176 calls at..?$21.48
Net Cost:?????????????????????.....$4.92
Profit: $4.92 - $4.11 = $0.81
(24 X 100 X $0.81) = $1,944 or 1.94% profit for the notional $100,000 portfolio
