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 PUTS
Buy the S&P 500 SPDR?s (SPY) February, 2016 $187 Puts outright at $3.50 or best
Opening Trade
1-11-2016
expiration date: February 19, 2016
Portfolio weighting: 5%
Number of Contracts = 14 contracts
You can pay all the way up to $4.00 for this put option contract and it still makes sense.
I am primarily adding this ?RISK OFF? position to hedge my risk in the ?RISK ON? (SPY) January $185-$190 call spread and the January $182-$187 call spread, which both expire in 5 trading days on January 15.
The failure of the market to rally in the face of Friday?s good news on the December nonfarm payroll and the China rally, means that the current rough patch may continue into this week.
If you can?t trade the options, stand aside. This is not a great place to initiate a new naked outright short.
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of optionshouse.
If you are uncertain on how to execute an options trade, please watch my training video on ?How to Execute a Bull Call Spread? by clicking here at https://www.madhedgefundtrader.com/ltt-executetradealerts/. You must me logged into your account to view the video.
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.
Here are the specific trades you need to execute this position:
Buy 14 February, 2016 (SPY) $187 puts at????.?.??$3.50
Time for Some Downside Protection
