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) March, 2015 $200-$204 in-the-money vertical bull call spread at $3.42 or best
Opening Trade
2-20-2015
expiration date: March 20, 2015
Portfolio weighting: 10%
Number of Contracts = 29 contracts
You can pay all the way up to $3.60 for this spread and it still makes sense. If you can?t do the options, buy the 2X Proshares Ultra S&P 500 ETF (SSO).
The 50 day moving average at $204 should give us plenty of support on the downside, and enough time to make it to expiration and get out whole.
I think we are going to see a pattern of low volume, tedious, sideways ?time? corrections in the (SPY) followed by slow, grinding breakouts to the upside at least until the end of March.
The S&P 500 SPDR?s (SPY) February, 2015 $200-$204 in-the-money vertical bull call spread wins big in this situation.
Since this is a big contract and fairly close to the money, there should be plenty of liquidity right up to the last day, if we have to stop out.
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.
If the price of this spread has moved more than 5% by the time you receive this Trade Alert, don?t chase it. Wait for the next one. There are plenty of fish in the sea.
Here are the specific trades you need to execute this position:
Buy 29 March, 2015 (SPY) $200 calls at?????$10.20
Sell short 29 March, 2015 (SPY) $204 calls at..?$6.78
Net Cost:??????????????????.....$3.42
Potential Profit: $4.00 - $3.42 = $0.58
(29 X 100 X $0.58) = $1,682 or 1.68% profit for the notional $100,000 portfolio.
