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 - (BAC)
Buy the Bank of America (BAC) January, 2016 $15-$16 in-the-money vertical bull call debit spread at $0.88 or best
Opening Trade
12-9-2015
expiration date: January 15, 2016
Portfolio weighting: 10%
Number of Contracts = 114 contracts
You can buy this put spread anywhere within the $0.85-$0.90 range and have a reasonable expectation of making money on this trade. If you can't do options but the stock outright at market.
Warning! With a low price and a large number of contracts, this trade is particularly sensitive to your commission rate. So if you are overpaying your broker, now is the time to have a conversation with them and negotiate your rates down. It?s easier than you think, especially on spread trades.
The $15 and $16 strikes also make this a nice set up on the charts, hovering just below major support levels..
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.
If the price of this spread has moved more than 5% by the time you receive this Trade Alert, don?t chase it. Wait for the next one. There are plenty of fish in the sea.
Here are the specific trades you need to execute this position:
Buy 114 January, 2016 (BAC) $15 calls at?????$2.30
Sell short 114 January, 2016 (BAC) $16 calls at..??.$1.42
Net Cost:??????????????????.....$0.88
Potential Profit: $1.00 - $0.88 = $0.12
(114 X 100 X $0.12) = $1,368 or 1.37% profit for the notional $100,000 portfolio.
Time to Visit the ATM Again