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.
Trade Alert - (SPY)- BUY
Buy the S&P 500 SPDR?s (SPY) December, 2015 $185-$190 in-the-money vertical bull call spread at $4.48 or best
Opening Trade
11-13-2015
expiration date: December 18, 2015
Portfolio weighting: 10%
Number of Contracts = 22 contracts
As much as I hate doing a trade on Friday the 13th, this one is just too good to resist.
You can pay all the way up to $4.65 for this spread and it still makes sense. I you are unable to do options buy the stock outright.
Right here, the S&P 500 SPDR?s (SPY) December, 2015 $185-$190 in-the-money vertical bull call spread is a very low risk, high return trade, with a December 18 expiration.
The Volatility Index (VIX) finally popped above $20 this morning, so we can now earn decent profits buying very deep in-the-money vertical bull call spreads.
We haven?t been able to do this since the dog days of September.
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of optionshouse.
If you are uncertain on how to execute an options spread, please watch my training video on ?How to Execute a Bull Call Spread? by clicking here at https://www.madhedgefundtrader.com/ltt-executetradealerts/. You must me logged into your account to view the video.
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 22 December, 2015 (SPY) $185 calls at????.?.??$18.15
Sell short 22 December, 2015 (SPY) $190 calls at.???..$13.67
Net Cost:???????????????????.....$4.48
Potential Profit: $5.00 - $4.48 = $0.52
(22 X 100 X $0.52) = $1,144 or 1.14% profit for the notional $100,000 portfolio
