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 $190-$195 in-the-money vertical bull call spread at $4.11 or best
Opening Trade
8-21-2015
expiration date: September 18, 2015
Portfolio weighting: 10%
Number of Contracts = 24 contracts
You can pay all the way up to $4.35 for this spread and it still makes sense. If you can?t do options, buy the S&P 500 shares outright.
With the Volatility Index trading above $22, I?ll take that as a ?BUY? signal.
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 on expiration months farther out.
Here are the specific trades you need to execute this position:
Buy 24 September, 2015 (SPY) $190 calls at????.??$13.25
Sell short 24 September, 2015 (SPY) $195 calls at????..?$9.14
Net Cost:?????????????????????.....$4.11
Potential Profit at expiration: $4.00 - $4.11 = $0.89
(24 X 100 X $0.89) = $2,136 or 2.14% profit for the notional $100,000 portfolio.
