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 Update-Buy the Apple Call Spread position
Buy the Apple (AAPL) April, 2012 $450-$480 bull call spread for a net price of $27.35 or best
Opening Trade
3-2-2012
expiration date: 4-20-2012
Portfolio weighting: 20%
($20,000/100/$27.35) = 7 Contracts
To execute this trade you must add two positions simultaneously:
1) Buy the (AAPL) April, 2012 $450 calls at $97.60
2) Sell the (AAPL) April, 2012 $480 call at $70.25
Execution
March $450 call cost?????... $97.60
March $480 call premium earned?-$70.25
Net Cost???????.........?. $27.35
Profit Calculation at Expiration
Expiration value???????..$30.00
Purchase cost ?..??????. . $27.35
Net Profit????????.??.$2.65
Total profit = ($2.65 X 100 X 7) = $1,855 = $1,855% for the notional $100,000 portfolio
