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. This is your chance to ?look over? John Thomas? shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen.
Trade Alert - (ABX)-BUY
BUY the Barrick Gold (ABX) June 2016 $16-$17 in-the-money vertical bull call spread at $0.81 or best
Opening Trade
5-18-2016
expiration date: June 17, 2016
Portfolio weighting: 10%
Number of Contracts = 125 contracts
You can pay up to $0.85 for this spread and it still makes sense.
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 can't do options buy Barrick Gold (ABX) stock with a tight $1.00 stop loss below.
If you are uncertain on how to execute an options spread, please watch my training video on ?How to Execute a Bull Call Spread? by clicking here at https://www.madhedgefundtrader.com/ltt-executetradealerts/. You must me logged into your account to view the video.
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:
Buy 125 June, 2016 (ABX) $16 calls at????.?.??$3.40
Sell short 125 June, 2016 (ABX) $17 calls at......$2.59
Net Cost:???????????????..??..?..$0.81
Potential Profit: $1.00 - $0.81 = -$0.19
(125 X 100 X $0.19) = $2,327 or 23.46% profit in 23 trading days
?
