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 - (NEM) - BUY
BUY the Newmont Mining (NEM) October, 2017 $32-$34 in-the-money vertical BULL CALL spread at $1.68 or best
Opening Trade
8-24-2017
expiration date: October 20, 2017
Portfolio weighting: 10%
Number of Contracts = 59 contracts
This is a bet that Newmont Mining Corp shares will NOT fall below $34 by the October 20 option expiration in 40 trading days, compared to the current $147.81.
Don't pay more than $1.75 for this position or you'll be chasing.
It looks like gold is imminently going to breakout to the upside, so I want to move to a triple position by adding 10% more in the gold miners.
The world is clearly rushing to add some downside protection to their portfolio.
We could be one presidential tweet away from a home run on this position.
Two of my existing position in the miners expire in 15 trading days, and this new position in the Newmont Mining (NEM) October, 2017 $32-$34 in-the-money vertical BULL CALL spread will give me "RISK OFF", anti-FANG protection for the next two months.
If you can't trade options, buy Newmont Mining shares outright. We have some serious work to do on the upside.
Colorado based Newmont Mining is the world's second largest gold producer, with mines in Nevada, Indonesia, Australia, New Zealand, Ghana, and Peru.
In 2016, Newmont produced 4.9 million ounces of GOLD and generated revenue of US$6.7 billion. All-in sustaining costs totaled $912 per ounce of gold produced, one of the lowest in the world.
It is one of the top establishment gold miners.
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of Interactive Brokers.
If you are uncertain on how to execute an options spread, please click here:http://members.
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. If it doesn't get done, then bump up your bid for the spread by a few cents.
The difference between the bid and the offer on these deep in-the-money spread trades can be enormous. You are trying to buy your own yacht with this trade, not your broker's.
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.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
Here are the specific trades you need to execute this position:
Buy 59 October, 2017 (NEM) $32 calls at.................................$5.30
Sell short 59 October, 2017 (NEM) $34 calls at.........................$3.62
Net Cost:...................................................................................$1.68
Potential Profit: $2.00 - $1.68 = $0.32
(59 X 100 X $0.32) = $1,888 or 19.04% in 40 trading days.
