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)-STOP LOSS
SELL the S&P 500 SPDR's (SPY) July, 2017 $245-$248 in-the-money vertical bear put spread at $2.49 or best
Closing Trade
7-13-2017
expiration date: July 21, 2017
Portfolio weighting: 10%
Number of Contracts = 40 contracts
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/.
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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 40 July, 2017 (SPY) $248 puts at............................$3.80
Buy to cover short 40 July, 2017 (SPY) $245 puts at.......................$1.31
Net Proceeds:...................................................$2.49
Profit: $2.49 - $2.53 = -$0.04
(40 X 100 X -$0.04) = -$160.
