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 - (GLD)
Buy the SPDR Gold Trust Shares (GLD) March, 2015 $107-$112 in-the-money vertical bull call spread at $4.35 or best
Opening Trade
2-23-2015
expiration date: March 20, 2015
Portfolio weighting: 10%
Number of Contracts = 22 contracts
You can pay all the way up to $4.60 for this spread and it still makes sense. If you can?t do the options, buy the (GLD) stock outright.
If I add a ?RISK OFF? position here in the form of a SPDR Gold Trust Shares (GLD) March, 2015 $106-$111 in-the-money vertical bull call spread, I can also add an additional ?RISK ON? position and keep my risk under control.
Hopefully, I?ll make money on both sides.
If you are particularly adventurous, you can add similar positions in the Market Vectors Gold Miners ETF (GDX), or in the world?s largest gold miner, Barrick Gold (ABX).
In depth research piece to follow.
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 22 March, 2015 (GLD) $107 calls at?????$9.00
Sell short 22 March, 2015 (GLD) $112 calls at..?$4.65
Net Cost:??????????????????.....$4.35
Potential Profit at expiration: $5.00 - $4.35 = $0.65
(22 X 100 X $0.65) = $1,430 or 1.43% profit for the notional $100,000 portfolio.
