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 - (T)
Buy the AT&T (T) February, 2015 $35-$37 in-the-money bear put spread at $1.65 or best
Opening Trade
1-7-2015
expiration date: February 20, 2015
Portfolio weighting: 10%
Number of Contracts = 60 contracts
You can buy this put spread anywhere within a $1.60 to $1.75 range and get good value for the money.
If you can?t do spreads, pass on this one as there is not enough downside to justify risk/reward for an outright short.
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.
If the price of this spread has moved more than 5% by the time you receive this Trade Alert, don?t chase it. Wait for the next one. There are plenty of fish in the sea.
Here are the specific trades you need to execute this position:
Buy 60 February, 2015 (T) $37 puts at?????$4.00
Sell short 60 February, 2015 (T) $35 puts at..??.$2.35
Net Cost:??????????????????.....$1.65
Potential Profit: $2.00 - $1.65 = $0.35
(60 X 100 X $0.35) = $2,100 or 2.10% profit for the notional $100,000 portfolio.
