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 - (SPY)
Buy the S&P 500 SPDR?s (SPY) September, 2015 $214-$217 in-the-money vertical bear put spread at $2.54 or best
Opening Trade
8-14-2015
expiration date: September 18, 2015
Portfolio weighting: 10%
Number of Contracts = 40 contracts
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.
You can buy this vertical bear put spread upto $2.70 and have a reasonable expectation of making money on this trade.
If you can?t do options, then stand aside. This is a short term options play only.
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.
Here are the specific trades you need to execute this position:
Buy 40 September, 2015 (SPY) $217 puts at??????.??$9.35
Sell short 40 September, 2015 (SPY) $214 puts at????..?$6.81
Net Cost:?????????????????????.....$2.54
Potential Profit at expiration: $3.00 - $2.54 = $0.46
(40 X 100 X $0.46) = $1,840 or 1.84% profit for the notional $100,000 portfolio.
