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 $177-$182 in-the-money vertical bull call spread at $4.98 or best
Closing Trade-NOT FOR NEW SUBSCRIBERS
3-4-2016
expiration date: March 18, 2016
Portfolio weighting: 10%
Number of Contracts = 22 contracts
Congratulations! You did it again!
You caught the entire $18 point rally in the (SPY).
You can now take a profit on the S&P 500 SPDR?s (SPY) March, 2016 $177-$182 in-the-money vertical bull call spread.
Let the lemmings chase the market for the last three cents in this position.
This means you earned a healthy 9.47% profit in only eight trading days.
For those who recently joined the Mad Hedge Fund Trader service, please be patient. The only thing there is to do right here is to take profits on positions we established weeks ago.
Your time will come. Just wait for the market to dish something up for us.
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 22 March, 2016 (SPY) $177 calls at????.?.??$22.30
Buy to cover short 22 March, 2016 (SPY) $182 calls at.?..$17.32
Net Proceeds:?????????????????......$4.98
Profit: $4.98 - $4.54 = $0.44
(22 X 100 X $0.44) = $968 or 0.97% profit for the notional $100,000 portfolio
