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) - EXPIRATION
Expiration of the Bank of America (BAC) November, 2014 $15-$16 in-the-money vertical call spread at $1.00
Closing Trade ? NOT FOR NEW SUBSCRIBERS!
11-24-2014
expiration date: November 21, 2014
Portfolio weighting: 10%
Number of Contracts = 120 contracts
My bet that Bank of America (BAC) shares would go up, sideways, or down small from September onward proved dead on correct.
We got an assist from one of the most ferocious stock market rallies in history. Despite all of the violence in the markets, the volatility of our vertical call spread remained muted, and our capital at risk limited, as it is supposed to.
It also helped that ten year Treasury bond yields collapsed from 1.86% to 2.39%, which is always beneficial for financial shares.
Your broker should credit the full profit for this position in your account this morning, and release the margin requirement. If they don?t, you should get on the phone immediately.
The next thing to do is pat yourself on the back for a trade well done, and then figure out how to spend the money.
On to the next trade.
Here are the specific prices you can use this position:
Long 110 November, 2014 (BAC) $15 calls at?????$2.12
Short 110 November, 2014 (BAC) $16 calls at..????.$1.12
Net Value:??????????????????.....$1.00
Profit: $1.00 - $0.83 = $0.17
(120 X 100 X $0.17) = $2,040 or 2.04% profit for the notional $100,000 portfolio.
