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 - (TLT)
BUY the iShares Barclays 20+ Year Treasury Bond Fund (TLT) September, 2015 $128-$131 in-the-money vertical bear put spread at $2.62 or best
Opening Trade
8-14-2015
expiration date: September 18, 2015
Portfolio weighting: 10%
Number of Contracts = 38 contracts
You can pay all the way up to $2.70 for this spread and it still makes sense.
If you can?t do the options, buy the ProShares Ultra Short Treasury ETF (TBT).
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 open this position:
Buy 38 September, 2015 (TLT) $131 Puts at?????$7.55
Sell short 38 September, 2015 (TLT) $128 puts at?..?$4.93
Net Cost:????????????????.....$2.62
Potential Profit at expiration: $3.00 - $2.62 = $0.38
(38 X 100 X $0.38) = $1,444 or 1.44% profit for the notional $100,000 portfolio.
