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 - (SPY)- SELL TAKE PROFITS
SELL the S&P 500 SPDR's (SPY) August, 2017 $250-$253 in-the-money vertical bear put spread at $2.87 or best
Closing Trade
8-8-2017
expiration date: August 18, 2017
Portfolio weighting: 10%
Number of Contracts = 37 contracts
This was a bet that the (SPY) would not rise above $250 by the August 18 expiration date in 15 trading days.
Here we are with 7 trading days left to expiration and we have a decent profit, despite the fact that the Dow Average has gone up for 11 straight days.
I love trading strategies that make money, even when I am wrong!
In fact, we get to keep 65.62% of the maximum potential profit in this position, or some $777.
Nevertheless, as we approach our lower $250 strike price the risk/reward is not longer favorable.
I am therefore selling my position in the S&P 500 SPDR's (SPY) August, 2017 $250-$253 in-the-money vertical bear put spread at $2.87 or best
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 Bear Put Debit Spread" by clicking here at https://www.madhedgefundtrader.com/ltt-executetradealerts/.
You must be logged into your account to view the video.
Please keep in mind that these are ballpark prices only. There is no telling how much the market can move by the time you get this.
Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage. In today's market, investors need every advantage they can get.
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.
Here are the specific trades you need to execute this position:
Sell 37 August, 2017 (SPY) $253 puts at ............................................$4.80
Buy to cover short 37 August, 2017 (SPY) $250 puts at....................$1.93
Net Proceeds: ........................................................................................$2.87
Potential Profit: $2.87 - $2.68 = $0.21
(37 X 100 X $0.21) = $777 or 7.83% profit 8 trading days.
