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 - (FB)- SELL-STOP LOSS
SELL the Facebook (FB) October, 2016 $120-$125 in-the-money vertical bull call spread at $4.00 or best
Closing Trade
9-14-2016
Expiration Date: October 21, 2016
Portfolio Weighting: 10%
Number of Contracts = 24 contracts
I am going to use this morning?s rally to de-risk one more time.
That will give me the dry powder to take positions back on during the next meltdown.
If you have the stock, keep it. I think it could double over the next three years.
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 an options spread, please watch my training video on ?How to Execute a Bull Call Spread? by clicking https://www.madhedgefundtrader.com/ltt-executetradealerts/. You must be 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:
SELL 24 October, 2016 (FB) $120 calls at????.?.??$5.60
BUY to cover short 24 October, 2016 (FB) $125 calls at.?..$1.60
Net Proceeds:?????????????????........$4.00
Loss: $4.12 - $4.00 = -$0.12
(24 X 100 X -$0.12) = -$288 or -2.91%
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