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 - (SFTBY) ? STOP LOSS
Sell the General Motors (GM) August, 2014 $33-$35 in-the-money bull call spread at $1.27 or best
Closing Trade
expiration date: August 15, 2014
Portfolio weighting: 10%
Number of Contracts: 56
Keep in mind that the options market is highly illiquid now, so don't hold me to these prices. They are ballpark estimates, at best.
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 56 August, 2014 (GM) $33 calls at...............$1.72
Buy to cover short 56 August, 2014 (CAT) $35 calls at.........$0.45
Net Cost:...........................................................$ 1.27
Loss: $1.79 - 1.27 = $0.52
(56 X 100 X -$0.52) = $2,912 or 2.91% loss for the notional $100,000 portfolio.
