When a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what security to buy, 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.
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Trade Alert - (FB)- BUY
BUY the Facebook (FB) November, 2016 $114-$117 in-the-money vertical bull call spread at $2.57 or best
Opening Trade
11-7-2016
Expiration Date: November 18, 2016
Portfolio Weighting: 10%
Number of Contracts = 38 contracts
We are seeing a very rare condition in the options market today where you can earn in nine days what it normally takes 4-6 weeks to earn with a Facebook (FB) deep-in-the-money call spread.
This is a trade you wait all year to execute.
Of course, there is a very high level of the Volatility Index (VIX), which has been elevated by the uncertainty of tomorrow?s presidential election. This has fed into the pricing of ALL options.
If you can't do options buy the stock outright.? This is a good entry point on a great stock.
This is a bet that Facebook will not trade below $117 by the November 18th expiration in 9 trading days. That is off a substantial 12.68% from the last week?s all time high.
In other words, Facebook could fall $4.80 and we could still make money on this position!
Indeed, the numbers for this position were so attractive that I had to run them twice to make sure I wasn?t making a mistake.
The election outcome is not uncertain to me.
After participating or covering elections for nearly 50 years, and harvesting the insights gained from attending those tedious White House dinners, I am confident of the outcome: Hillary Clinton should win in the Electoral College by a landslide.
Some mathematical, artificial intelligence driven models have her winning by as many as 123 electoral votes while others give her a probability of winning of 82%.
So I?m putting my money where my mouth is.
CAUTION: If you are certain Donald Trump is going to win the election, you absolutely DO NOT want to do this trade.
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 are uncertain about how to execute this options spread, please watch my training video? ?How to Execute a Vertical Bull Call Spread?
Please keep in mind these are ballpark prices at best. After the text alerts go out, prices can be all over the map. There is no telling how much the market will have moved by the time you get this email.
Paid subscribers, be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage.? In today's volatile markets, individual investors need every advantage they can get.
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 with only 9 days to expiration.
Here Are the Specific Trades You Need to Execute This Position:
Buy 38 November, 2016 (FB) $114 calls at??.?.??$8.00
Sell short 38 November, 2016 (FB) $117 calls at???.$5.43
Net Cost:?????????????????......$2.57
Profit: $3.00 - $2.57 = $0.43
(38 X 100 X $0.43) = $1,634 or 16.73% profit in 9 trading days.
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