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)
Sell the S&P 500 (SPY) November, 2014 $168-$173 in-the-money vertical bull call spread at $4.80 or best
Closing Trade
10-21-2014
expiration date: November 21, 2014
Portfolio weighting: 10%
Number of Contracts = 24 contracts
You can sell this spread anywhere in a $4.70-$4.90 range and lock in a great three day trade. We have 76% of the potential profit in this position after catching an amazing 10.3 point, or 5.6% run up in the (SPY) in a mere 3 trading days.
Put this one in the traders? Hall of Fame!
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.
Keep in mind that these are ballpark prices only. Spread pricing can be very volatile on expiration months farther out.
Here are the specific trades you need to execute this position:
Sell 24 November, 2014 (SPY) $168 calls at?????$24.20
Buy to cover short 24 November, 2014 (SPY) $173 calls at..$19.40
Net Cost:??????????????????.....$4.80
Profit at expiration: $4.80 - $4.17 = $0.63
(24 X 100 X $0.63) = $1,512 or 1.51% profit for the notional $100,000 portfolio.
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