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.
Trade Alert - (SPY)- TAKE PROFITS
SELL the S&P 500 SPDR?s (SPY) March, 2016 $170-$175 in-the-money vertical bull call spread at $4.96 or best
Closing Trade-NOT FOR NEW SUBSCRIBERS
3-1-2016
expiration date: March 18, 2016
Portfolio weighting: 10%
Number of Contracts = 25 contracts
What do you know? The world didn?t end after all!
It helped a lot that we absolutely nailed the bottom of this down move, buying the S&P 500 SPDR?s (SPY) March, 2016 $170-$175 in-the-money vertical bull call spread right when market sentiment was absolutely the worst.
As a result, you were able to make an impressive 25.50% profit in only 20 trading days, right when everyone was throwing the baby out with the bathwater and losing their shirt.
Time to free up some dry powder so we can buy this baby back on the next melt down, which will certainly come in this highly volatile year.
WELL DONE AND ON TO THE NEXT TRADE!
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 25 March, 2016 (SPY) $170 calls at????.?.??$28.00
Buy to cover short 25 March, 2016 (SPY) $175 calls at.?..$23.04
Net PROCEEDS:??????..?????????......$4.96
Profit: $4.96 - $3.95 = $1.01
(25 X 100 X $1.01) = $2,525 or 2.53% profit for the notional $100,000 portfolio
