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)- TAKE PROFITS
Sell the S&P 500 SPDR?s (SPY) September, 2015 $174-$179 in-the-money vertical bull call spread at $4.90 or best
Closing Trade
9-8-2015
expiration date: September 18, 2015
Portfolio weighting: 10%
Number of Contracts = 24 contracts
At $4.90, the S&P 500 SPDR?s (SPY) September, 2015 $174-$179 in-the-money vertical bull call spread has reaped 78.26% of the maximum potential profit.
That gives us an 8.64% profit in a mere four trading days.
In these tempestuous trading conditions that is a profit you want to hang on to. It is better to have dry powder to slap this baby back on during the next, inevitable market dive.
Also, in the run up to expiration, the deep in the money short leg of this spread, the short $179 call, is increasingly being stolen through exercise by its owners, greatly increasing your risk in a highly volatile market.
Keep in mind that we have ?fast trading? conditions now, so the prices can be anywhere.
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 24 September, 2015 (SPY) $174 calls at????.??$21.85
Buy to cover short 24 September, 2015 (SPY) $179 calls at.?$16.95
Net Cost:?????????????????????.....$4.90
Profit: $4.90 - $4.54 = $0.36
(24 X 100 X $0.36) = $864 or 0.86% profit for the notional $100,000 portfolio
