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 - (TLT) - EXPIRATION
EXPIRATION of the iShares Barclays 20+ Year Treasury Bond Fund (TLT) August 2017 $128-$130 in-the-money vertical BEAR PUT spread at $2.00
August Expiration
8-18-2017
expiration date: August 18, 2017
Portfolio weighting: 10%
Number of Contracts = 53 contracts
I am clocking another win with my short position in the bond market.
This gives us a $636, or 6.38% profit in a mere seven trading days.
Profits will be credited to your trading account.
The iShares Barclays 20+ Year Treasury Bond Fund (TLT) August, 2017 $128-$130 in-the-money vertical BEAR PUT spread was a bet that interest rates would rise, remain unchanged, or fall slightly going into the August 18 expiration in seven trading days.
That is exactly what we got.
Interest rates fell, but only from 2.20% to 2.17%, not enough to prevent us from taking in the maximum profit in this position.
We managed to pull this off despite having to endure the most volatile trading week of 2017.
We had to suffer potential war with North Korea, the rise of the American Neo-Nazi Party, and mass resignations from the government, and that was all within one week!
It all vindicates the cautious, low risk, hedged approach that I take to the markets. The outcome is that I make money all the time, whether markets are going up, down, or sideways.
The sudden explosion in volatility means that almost every options strategy is twice as profitable as it was only a few weeks ago.
My Mad Hedge Market Timing Index has hit a two year low at an amazing 17, which means that the risk of adding new positions here is extremely low.
As a result, we have moved to an aggressive, fully invested market neutral position, deploying nearly 100% of our cash.
As a result of this trade, we are now up 5.58% for the month of August 30.23% in 2017, and 49.27% over the past 12 months.
Our average annualized eight-year return now stands at 32.45%.
It seems that the harder I work, the luckier I get.
Standby, because September is also setting up to be a blockbuster double-digit month.
Well done, and on to the next trade!
If you are uncertain on how to execute an options spread, please watch my training video on How to Execute a Vertical Bear Put Spread by clicking here at
http://members.
Here are the specific numbers you need to close out this position:
Expiration of 53 August, 2017 (TLT) $130 puts at.................... $3.38
Expiration of short 53 August, 2017 (TLT) $128 puts at...........$1.38
Net Credit at Expiration...............................................................$2.00
Profit: $2.00 - $1.88= $0.12
(53 X 100 X $0.12) = $636 or 6.38% in 7 trading days.
49.27% Trailing One Year Mad Hedge Performance
