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 - (USO)- TAKE PROFITS
SELL the United States Oil Fund (USO) May, 2016 $8 calls at $1.38 or GO TO THE MARKET
Closing Trade
2-16-2016
expiration date: May 15, 2016
Portfolio weighting: 5%
Number of Contracts = 45 contracts
I am going to take a quickie 23% profit here and sell my United States Oil Fund (USO) May, 2016 $8 calls.
Time to get some dry powder so I can buy back on the next dip.
But the rumor, sell the news. That?s how you make money in the options market.
Over the weekend, not only did we get the rumors of a meeting to cap oil production, we got an actual agreement between Saudi Arabia and Russia!
More than in any other instrument, the nimble have been rewarded in trading oil. This gives us the dry powder to buy then next -6% capitulation sell off day.
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 by clicking here at https://www.madhedgefundtrader.com/ltt-executetradealerts/. You must me logged into your account to view the video.
Here is the specific trade you need to execute this position:
SELL 45 May, 2016 (USO) $8 calls at????.?.??$1.38
Profit: $1.38 - $1.12 = $0.26
(45 contracts X $0.26 X 100) = $1,170 or $1.17% for the notional $100,000 model trading portfolio
