When a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what security to buy, 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.
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Trade Alert - (IWM)- TAKE PROFITS
SELL the iShares Russell 2000 ETF (IWM) November, 2016, $125-$128 in-the-money vertical bear put spread at $2.92 or best
Closing Trade
11-1-2016
Expiration Date: November 18, 2016
Portfolio weighting: 10%
Number of Contracts = 40 contracts
This has been one of the most profitable trades this year, picking up an impressive 21.16% profit in only 8 trading days.? By cashing out here, we are realizing 86.44% of the maximum profit potential.
It was a bet that the iShares Russell 2000 ETF (IWM) wouldn?t trade above $125 at the November options expiration in 21 trading days. That would be just short of a new all time high.
The great thing about the Russell 2000 (IWM) is that it moves twice as fast as the S&P 500 (SPY) in falling markets, so it makes a wonderful downside hedge.
If you bought the ETF outright, hold on to it long term.
I believe we are going to new highs, but just not quite yet.
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 this options spread, please watch my training video How to Execute a Vertical Bear Put Debit Spread
Please 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.
Paid subscribers, be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage.? In today's volatile markets, individual 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 with only 13 days to expiration.
Here Are the Specific Trades You Need to Execute This Position:
Sell 40 November, 2016 (IWM) $128 puts at????.?.??$10.10
Buy to cover short 40 November, 2016 (IWM) $125 puts at...$7.18
Net Cost:????????????????????......$2.92
Profit: $2.92 - $2.41 = $0.51
(40 X 100 X $0.51) = $2,040 or 21.16% profit in 8 trading days.
