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) TAKE PROFITS
SELL the Global X Silver Miners ETF (SIL) September, 2017 $31-$33 in-the-money vertical BULL CALL spread at $1.98 or best
Closing Trade - NOT FOR NEW SUBSCRIBERS
9-5-2017
expiration date: September 15, 2017
Portfolio weighting: 10%
Number of Contracts = 56 contracts
In the face of the melt up in silver prices this morning, I am going to take a quick profit on my remaining long position in the precious metals.
I am therefore selling my position in the Global X Silver Miners ETF (SIL)September, 2017 $31-$33 in-the-money vertical BULL CALL spread.
Using this morning's prices, we can now reap 90.90% of the maximum potential profit.
We earned an 11.23% on this trade in only 5 trading days in this position.
As I expected, silver conducted a major breakout last week, and blasted through to a new 2017 high.
This was a bet that the Global X Silver Miners shares would NOT fall below $33.00 by the September 15 option expiration in 13 trading days, compared to the current then $35.00.
It is now trading at $35.82, up 2.34%. Much of the money on this trade was made from accelerated time decay in the final days of the life of this expiration.
If you didn't do options and bought the (SIL) shares outright, keep them. Silver prices should do well for the rest of 2017.
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 on How to Execute a Vertical Bull Call Spread
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:
SELL 56 September, 2017 (SIL) $31 calls at....................................................$4.90
Buy to cover short 56 September, 2017 (SIL) $33 calls at...............................$2.92
Net Proceeds:...........................................................................................$1.98
Profit: $1.98 - $1.78 = $0.20
(56 X 100 X $0.20) = $1,120 or 11.23% in 5 trading days.
