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
Buy the S&P 500 SPDR?s (SPY) August, 2015 $195 - $200 in-the-money vertical bull call spread at $4.10 or best
Opening Trade
7-9-2015
expiration date: August 21, 2015
Portfolio weighting: 10%
Number of Contracts = 24 contracts
The Chinese governments emergency rescue moves to put a floor under the stock market crash there may have also put a floor under the global risk off moves.
It?s time to pick up positions in the highest quality, lowest risk names.?
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Energy stocks & financial stocks both at recent lows I think the down side in the (SPY) from here is limited, making the $195-$200 vertical bull spread a reasonable bet.
There is also a 50-50 chance that we get a new Greek debt deal this weekend.
You can buy this vertical bull call spread anywhere within a $4.00-$4.30 range and have a reasonable expectation of making money on this trade.
If you can?t do the options, then buy the (SPY) long outright.
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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.
From John Thomas and his camel in the Western Sahara Desert.
Here are the specific trades you need to execute this position:
Buy 24 August, 2015 (SPY) $195 calls at?????$13.37
Sell short 24 August, 2015 (SPY) $200 calls at..?$9.27
Net Cost:??????????????????.....$4.10
Potential Profit: $5.00 - $4.10 = $0.90
(24 X 100 X $0.90) = $2,160 or 2.16% profit for the notional $100,000 portfolio.
