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 - (TSLA) ? STOP LOSS
Sell the Tesla (TSLA) November, 2014 $200-$220 in-the-money call spread at $13.55 or best
Closing Trade
10-13-2014
expiration date: November 21, 2014
Portfolio weighting: 10%
Number of Contracts =6 contracts
You can sell this call spread anywhere within a $12.00 - $13.50 range and limit your losses to this trade.
Keep in mind that the options market is highly illiquid now, so don?t hold me to these prices. They are ballpark estimates, at best.
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 6 November, 2014 (FXE) $200 calls at?????$35.00
Buy to cover short 6 November, 2014 (FXE) $220 calls at...$21.45
Net Proceeds:??????????????????.....$13.55
Loss: $16.25 ? $13.45 = -$2.70
(6 X 100 X -$2.70) = -$1,620 or -1.62% loss for the notional $100,000 portfolio.
