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 - (GOOGL)
Buy the Google (GOOGL) July, 2014 $480-$520 in-the-money bull call spread at $34.45 or best
Opening Trade
5-22-2014
expiration date: July 18, 2014
Portfolio weighting: 10%
Number of Contracts = 3 contracts
Keep in mind that we are seeing the lowest volume of the year this week, and liquidity in the options market has completely dried up. So getting anything done here might be a stretch. (VXX) with a $34 handle? Give me a break!
Still, I just thought I?d get the idea out there.
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.
Keep in mind that these are ballpark prices only. 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 3 July, 2014 (GOOGL) $480 calls at?????$76.95
Sell short 3 July, 2014 (GOOGL) $520 calls at..??.$42.50
Net Cost:??????????????????.....$34.45
Potential Profit: $40.00 - $34.45 = $5.55
(3 X 100 X $5.55) = $1,665 or 1.67% profit for the notional $100,000 portfolio.
