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)- TAKE PROFITS
SELL the S&P 500 SPDR?s (SPY) February, 2016 $166-$171 in-the-money vertical bull call spread at $4.87 or best
Closing Trade
1-27-2016
expiration date: February 19, 2016
Portfolio weighting: 10%
Number of Contracts = 23 contracts
Taking profits here ahead of the Fed announcement on interest rate policy at 2:00 EST. I have 81% of the maximum potential profit here, which gives me a 13.25% profit in only five trading days.
Dovish or hawkish? Who cares! I?m out of here. I want to be able to reestablish this positions $60 (SPY) points lower.
Trade, or perish!
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 spread, 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.
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:
SELL 23 February, 2016 (SPY) $166 calls at????.?.??$25.30
Buy to cover to short 23 February, 2016 (SPY) $171 calls..$20.43
Net Proceeds:???????????????????......$4.87
Profit: $4.87 - 4.30 = $0.57
(23 X 100 X $0.57) = $1,311 or 1.31% profit for the notional $100,000 portfolio
