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 - (TLT) ? STOP LOSS
Sell the iShares Barclay 20+ Year Treasury Bond Fund (TLT) August, 2014 $115-$118 in-the-money bear put spread at $2.66 or best
Closing Trade
8-13-2014
expiration date: August 15, 2014
Portfolio weighting: 10%
Number of Contracts = 37 contracts
Time to declare victory here and get out near our cost. At this point, controlling risk and preserving our outsized profits is more important than reaching for the next incremental dollar.
The entire profit in my short Treasury bond trade is captured in the next high set of strikes I added in my second trade, iShares Barclay 20+ Year Treasury Bond Fund (TLT) August, 2014 $117-$120 in-the-money bear put spread, which will almost certainly expire at its maximum value in two days. That is provided that Russia doesn?t invade the Ukraine first.
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.
Keep in mind that these are ballpark prices only. Spread pricing can be very volatile on expiration months farther out.
Here are the specific trades you need to execute this position:
Sell 37 August, 2014 (TLT) $118 puts at?????$3.20
Buy to cover short 37 August, 2014 (TLT) $115 puts at..??.$0.54
Net Proceeds:??????????????????.....$2.66
Loss: $2.71 ? $2.66 = -$0.05
(37 X 100 X -$0.05) = -$185 or -0.16% loss for the notional $100,000 portfolio.
