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 - (GLD)- BUY
Buy the SPDR Gold Shares (GLD) November, 2016 $112-$115 in-the-money vertical bull call spread at $2.62 or best
Opening Trade
10-11-2016
Expiration Date: November 18, 2016
Portfolio weighting: 10%
Number of Contracts = 38 contracts
You can pay all the way up to $2.70 for this spread and it still makes sense.
If you can?t do options, buy the SPDR Gold Shares (GLD) for a quick trade.
It's rare that you see a trade setting up on the two-year charts, but that?s what is happening today with gold.
An UPDATE on the fundamentals behind this trade will follow up shortly.
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 How to Execute a Vertical Bull Call Spread.
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.
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 across platforms.
Here are the specific trades you need to execute this position:
Buy 38 November, 2016 (GLD) $112 calls at????.?.??$8.25
Sell short 38 November, 2016 (GLD) $115 calls at.???.?..$5.63
Net Cost:????????????????????......$2.62
Potential Profit: $3.00 - $2.62 = $0.38
(38 X 100 X $0.38) = $1,444, or 14.50% profit in 28 trading days.
