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)- BUY
Buy the S&P 500 SPDR?s (SPY) October, 2016 $219-$222 in-the-money vertical bear put spread at $2.71 or best
Opening Trade
10-10-2016
Expiration Date: October 21, 2016
Portfolio Weighting: 10%
Number of Contracts = 41 contracts
You can pay all the way up to $2.80 for this spread and it still makes sense.
I am going to keep working both sides of this range in the S&P 500 until the cows come home or until the options expire, whichever comes first.
If you can?t do options, stand aside. This is a short-dated options expiration play only. However, medium term, I am bullish on US stocks.
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 about how to execute an options spread, please watch my training video:? How to Execute a Vertical Bear Put Debit Spread.
Keep in mind these are ballpark prices at best. After the text alerts go out, prices can be all over the map. There is no telling how much the market will have moved by the time you get this email.
Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage.? In today's volatile markets, individual investors need every advantage they can get.
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 with only 9 days to expiration.
Here are the specific trades you need to execute this position:
Buy 41 October, 2016 (SPY) $222 puts at????.?.??$5.70
Sell short 41 October, 2016 (SPY) $219 puts at.???.?..$2.99
Net Cost:????????????????????......$2.71
Potential Profit: $3.00 - $2.71 = $0.29
(41 X 100 X $0.29) = $1,189, or 10.70% profit in 9 trading days.
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