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 - (GLD)- BUY
Buy the SPDR Golf Shares ETF (GLD) December, 2017 $116-$119 in-the-money vertical BULL CALL spread at $2.65 or best Opening Trade
11-09-2017
expiration date: December 15, 2017
Portfolio weighting: 10%
Number of Contracts = 38 contracts
With stock market volatility expected to increase going into the yearend, hedging your existing positions with gold is not a bad idea.
Even if tax cuts eventually pass, you can expected several failed votes in congress first, as we saw with the attempted Obamacare repeal.
You can expect markets to have heart attacks when this happens.
That will lead to a spike in gold and other special metal prices.
I am therefore buying the SPDR Golf Shares ETF (GLD) December, 2017 $116-$119 in-the-money vertical BULL CALL spread at $2.65 or best.
Don't pay more than $2.70 for this position.
It is a bet that the (GLD) won't move below $119 over the next 25 trading days.
If you can't do options buy the (GLD) outright. It is going higher as portfolio managers rush to protect their portfolios.
Yes, it appears the worm is turning. Up every day for stocks is finished.
Here are the specific trades you need to execute this position:
Buy 38 December, 2017 (GLD) $116 calls at......................................$6.50
Sell short 38 December, 2017 (GLD) $119 calls at..........................$3.85
Net Cost:............................................................................................$2.65
Potential Profit: $3.00 - $2.65 = $0.35
(38 X 100 X $0.35) = $1,330 or 13.20% in 25 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.
