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)- SELL
SELL the S&P 500 SPDR?s (SPY) September, 2015 $204-$207 in-the-money vertical bear put spread at $2.90 or best
Closing Trade
9-9-2015
expiration date: September 18, 2015
Portfolio weighting: 10%
Number of Contracts = 37 contracts
I?ve got 66.6% of the maximum potential profit on this trade, and a week before the Fed interest rates decision, that?s good enough for me.
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 37 September, 2015 (SPY) $207 puts at????.??$12.00
Buy to cover short 37 September, 2015 (SPY) $204 puts at?.?$9.10
Net Cost:?????????????????????.....$2.90
Profit: $2.90 - $2.70 = $0.20
(37 X 100 X $0.20) = $740 or 0.74% profit for the notional $100,000 portfolio
