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, 2015 $200-$204 in-the-money vertical bull call spread at $3.60 or best
Closing Trade
3-6-2015
expiration date: March 20, 2015
Portfolio weighting: 10%
Number of Contracts = 29 contracts
You can sell this spread all the way down to cost at $3.42 and still get out for even.
Outright holders of the S&P 500 index should sell for the short term, but hold for the medium and long term.
To see the market trade this badly on such great news as the blockbuster February nonfarm payroll is really quite amazing.
What is even more shocking is to see both bonds and stocks go down in size at the same time.
And what is positively mind blowing is to see a big gap down in gold also when the rest of the world is going to hell in a hand basket.
Is the world going mad?
It?s a good this that we have a size short on in the euro which is atoning for all other sins. Three days into the trade, and we have already reaped 90% of the potential profit.
So if I?m up 9% on the year, and the Dow Average is up only 1%, the sidelines are looking pretty enticing.
I?ll buy back a (SPY) position lower down when the world looks like a safer place. Call me at (VIX) 20%.
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:
Sell 29 March, 2015 (SPY) $200 calls at?????$9.20
Buy to cover short 29 March, 2015 (SPY) $204 calls at..?$5.60
Net Cost:??????????????????.....$3.60
Potential Profit: $3.60 - $3.42 = $0.18
(29 X 100 X $0.18) = $522 or 0.52% profit for the notional $100,000 portfolio.
