When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Trade Alert - (XIV) - BUY
BUY Velocity Shares Daily Inverse VIX Short Term ETN (XIV) at 97.08
Opening Trade
2-5-2018
Portfolio weighting: 10%
Number of Shares = 103 shares
My bet is that the Volatility Index (VIX) is topping here at $25.39, up enormously from the $9.00 low in January.
Get go any higher we would need to see a real market crash. I just don???t see that happening in the face of the 14% corporate earnings growth we are seeing in the current quarter.
The S&P 500 is now off 6.5% from its $287 top from two weeks ago. The Dow average is down 7%. It is the biggest market correction since Brexit two years and eight months ago.
I am therefore buying the Velocity Shares Daily Inverse VIX Short Term ETN (XIV) at 107.29, a bet that market volatility will fall. Please note that it was as high as $146 only a few weeks ago. This is a low risk position as no leveraged is involved.
Don???t pay more than??$105??for this position or you???ll be chasing.
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.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
Here are the specific trades you need to execute this position:
Buy 103 (XIV) shares at??????.?????????$97.08
total cost = $97.08 X 103 shares = $9,999.24
To see how to enter this trade in your online platform, please look at the order ticket above, which I pulled off of Interactive Brokers.
If you are uncertain on how to execute an options spread, please watch my training video on How to Execute Vertical Call and Put Debit Spreads by clicking here.
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Please keep in mind that these are ballpark prices only. There is no telling how much the market can move by the time you get this.
Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage. In today's market, investors need every advantage they can get.
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 close to expiration.
If you don't get done, don't worry. There are another 250 Trade Alerts coming at you over the coming 12 months.
