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)- GO SHORT
Buy the S&P 500 SPDR?s (SPY) August, 2015 $214-$217 in-the-money vertical bear put spread at $2.50 or best
Opening Trade
7-24-2015
expiration date: August 21, 2015
Portfolio weighting: 10%
Number of Contracts = 40 contracts
Given that all of the big risk events of 2015 are behind us, I don?t think the markets have the juice to blast to new all time highs by mid August.
We have had the summer swoon, then the summer rally. Next is the summer nothing, when markets trade in a narrow range, digesting the recent momentous events.
If you can?t do the options, then stand aside. This is a short term options play only.
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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 40 August, 2015 (SPY) $217 puts at?????$8.61
Sell short 40 August, 2015 (SPY) $214 puts at?..?$6.11
Net Cost:????????????????.....$2.50
Potential Profit: $3.00 - $2.50 = $0.50
(40 X 100 X $0.50) = $2,000 or 2.00% profit for the notional $100,000 portfolio.
