When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Trade Alert - (GLD)- TAKE PROFITS
SELL the SPDR Gold Shares ETF (GLD) May, 2018 $119-$122 in-the-money vertical BULL CALL spread at $2.90 or best
Closing Trade
4-19-2018
expiration date: February 16, 2018
Portfolio weighting: 10%
Number of Contracts = 38 contracts
As we approach a new 2018 high for gold, I am going to cut back from a double to a single position in the barbarous relic.
Better to have extra cash on hand when the next panic attack hits global markets.
I am therefore selling the SPDR Gold Shares ETF (GLD) May, 2018 $119-$122 in-the-money vertical BULL CALL spread at $2.90 or best.
By coming out here you will earning a $950 profit, or 9.43% in 10 trading days.
If you bought the (GLD) outright keep it.
Gold and silver are clearly breaking out to the upside here on the long-term charts, no matter how slowly they may be doing it, and the new leg in the bull market is on.
The "exploding deficit"?trade is also accelerating faster than anyone expected, and it is still early days. You can see this across the entire inflation space, including collapsing bonds, all hard assets, commodities, equipment suppliers, commodity currencies, and a weak dollar.
This was a bet that the (GLD) wouldn't move below $122 over the next 30 trading days.
Here are the specific trades you need to exit this position:
Sell 38 May, 2018 (GLD) $119 calls at..........................$9.40
Buy to Cover short 38 May, 2018 (GLD) $122 calls at...........$6.50
Net Proceeds:.............................................................$2.90
Profit: $2.90 - $2.65 = $0.25
(38 X 100 X $0.25) = $950 or 9.43% in 10 trading days.
To see how to enter this trade in your online platform, please look at the order ticket above, which I pulled off of Interactive Brokers.
If you are uncertain on how to execute an options spread, please watch my training video on How to Execute Vertical Call and Put Debit Spreads by clicking here.
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Please keep in mind that these are ballpark prices only. There is no telling how much the market can move by the time you get this.
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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 close to expiration.
If you don't get done, don't worry. There are another 250 Trade Alerts coming at you over the coming 12 months.