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 - (AAPL)
Sell the Apple (AAPL) November, 2014 $87.50-$92.50 in-the-money vertical bull call spread at $4.90 or best
Closing Trade
10-21-2014
expiration date: November 21, 2014
Portfolio weighting: 10%
Number of Contracts = 24 contracts
You can sell this spread anywhere in the $4.80-$4.90 range and still hit a home run.
Keep in mind that the options market is highly illiquid now, so don?t hold me to these prices. They are ballpark estimates, at best.
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:
Sell 24 November, 2014 (AAPL) $87.50 calls at?????$14.50
Buy to cover short 24 November, 2014 (AAPL) $92.50 calls ?.$9.60
Net Proceeds:??????????????????.....$4.90
Profit: $4.90 - $4.25 = $0.65
(24 X 100 X $0.65) = $1,560 or 1.56%% profit for the notional $100,000 model portfolio.
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