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) February, 2015 $189-$194 in-the-money vertical bull call spread at $4.00 or best
Opening Trade
1-29-2015
expiration date: February 20, 2015
Portfolio weighting: 10%
Number of Contracts: 25
The upper strike here is well under a support level for the S&P 500 (SPY) that has held all the way back to the October crash.
Now that we have completed today?s final flush and cleaned out all the stop loss sales down to $198.68, it is worth taking a shot here on the long side. It?s ?Close you eyes and BUY? day.
Only 15 trading days to expiration on this one, and a Volatility Index (VIX) spike up to 22% gets us a nice return.
But keep a tight stop loss on this baby, in case we want to break more records on the (VIX).
You can BUY the (SPY) February, 2015 -$189-$194 in-the-money vertical bull call spread anywhere in the $3.80 - $4.20 range.
If you can't do spreads, stand aside on this one as the risk/reward on purchase is too great.
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 25 February, 2015 (SPY) $189 calls at?????$11.15
Sell short 25 February, 2015 (SPY) $194 calls at..??.$7.15
Net Cost:??????????????????.....$4.00
Potential Profit: $5.00 - $4.00 = $1.00
(25 X 100 X $1.00) = $2,500 or 2.50% profit for the notional $100,000 portfolio.
