When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Trade Alert - (FCX) - BUY
BUY the Freeport McMoRan (FCX) February, 2018 $17-$18 in-the-money vertical BULL CALL spread at $0.78 or best
Opening Trade
1-23-2018
expiration date: February 16, 2018
Portfolio weighting: 10%
Number of Contracts = 128 contracts
This is your ticket to the coming commodities boom, the inevitable result of a prolonged global synchronized economic recovery and exploding American debt.
We aren't going to get a big dip in this stock. A sideways "time" correction is going to have to suffice in this superheated environment.
This is a bet that Freeport shares will NOT fall below $18 by the February 16 option expiration in 19 trading days, compared to the current $19.36.
To lose money on this trade Freeport would have to fall below $18 by the February 16 options expiration day, a decline of 6.92%.
Don't pay more than $0.85 for this position or you'll be chasing.
If you don't do options, close your eyes and buy Freeport (FCX) shares outright.
Here are the specific trades you need to execute this position:
Buy 128 February 2018 (FCX) $17 calls at.........................................$2.60
Sell short 128 February 2018 (FCX) $18 calls at..................................$1.82
Net Cost:...........................................................................................$0.78
Potential Profit: $1.00 - $0.78 = $0.22
(128 X 100 X $0.22) = $2,816 or 28.20% in 18 trading days.
To see how to enter this trade in your online platform, please look at the order ticket above, which I pulled off of Interactive Brokers.
If you are uncertain on how to execute an options spread, please watch my training video on How to Execute Vertical Call and Put Debit Spreads by clicking here.
You must be logged into your account to view the video.
Please keep in mind that these are ballpark prices only. There is no telling how much the market can move by the time you get this.
Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage. In today's market, 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 close to expiration.
If you don't get done, don't worry. There are another 250 Trade Alerts coming at you over the coming 12 months.
