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 - (SIL) - BUY
BUY the Global X Silver Miners ETF (SIL) September, 2017 $31-$33 in-the-money vertical BULL CALL spread at $1.78 or best
Opening Trade
8-28-2017
expiration date: September 15, 2017
Portfolio weighting: 10%
Number of Contracts = 56 contracts
This is a bet that Global X Silver Miners shares will not FALL below $33.00 by the September 15 option expiration in 13 trading days, compared to the current $35.00.
Don't pay more than $1.87 or this position or you'll be chasing.
If you don't do options, buy (SIL) shares outright. Silver prices today enjoyed a major upside breakout and are about to go ballistic.
Remember, this is just a 13 trading day view.
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 watch my training video:
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 56 September, 2017 (SIL) $31 calls at...............................4.60
Sell short 56 September, 2017 (SIL) $33 calls at??............................$2.82
Net Cost:....................................................................................$1.78
Potential Profit: $2.00 - $1.78 = $0.22
(56 X 100 X $0.22) = $1,232 or 12.36% in 13 trading days.
