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.
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Trade Alert - (TLT)- Buy
Buy the iShares 20+ Year Treasury Bond Fund (TLT) November, 2016 $137-$140 in-the-money vertical bear put spread at $2.65 or best
Opening Trade
10-19-2016
Expiration Date: November 18, 2016
Portfolio Weighting: 10%
Number of Contracts = 37 contracts
You can pay up to $2.75 and this trade still makes sense.
If you can't do options, stand aside; (TLT) is too low to short outright.
I am going to use this two-point rally to reestablish my short position in the Treasury bond market.
This is a bet that the iShares 20 Year+ Treasury Bond ETF (TLT) will not close above $137 by the November 18 expiration in 22 trading days.
We already have a long positions in bonds via the November $127-$130 vertical bull call spread with which to hedge this new November position.
Low risk, high return, I love it!
Open you online trading platform please.
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 about how to execute an options spread, please watch my training video How to Execute a Vertical Bear Put Spread.
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.
Please keep in mind these are ballpark prices at best. After the text alerts go out, prices can be all over the map. There is no telling how much the market will have moved by the time you get this email.
Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage.? In today's volatile markets, individual investors need every advantage they can get.
Here Are the Specific Trades You Need to Execute This Position:
Buy 37 November, 2016 (TLT) $140 puts at????.???$7.90
Sell short 37 November, 2016 (TLT) $137 puts at..????.$5.25
Net Cost:????????????????..??.?.....$2.65
Profit: $3.00 - $2.65 = $0.35
(37 X 100 X $0.35) = $1,295 or 13.20% in 22 trading days.
