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)- TAKE PROFITS
SELL the iShares Barclays 20+ Year Treasury Bond Fund (TLT) January, 2016 $112-$115 in-the-money vertical bull call spread at $2.92 or best
Closing Trade
12-8-2015
expiration date: January 15, 2016
Portfolio weighting: 10%
Number of Contracts = 37 contracts
I?m sorry, but when I capture 73.33% of the maximum potential profit in a trade in a mere two trading days, I grab it. No waffling, no excuses, no hesitation. I take the money and run.
And doing this six trading days before the most important Fed meeting in a decade? I can believe you?re even asking the question.
With this volatility, we are going to have amply opportunities to play from the long and short side in coming months. This could be the trade that keeps on giving.
If you have the ProShares Ultra Short 20+ Treasury bond fund (TBT) instead of the options, keep it. The fun has only just begun.
If you are uncertain on how to execute an options spread, please watch my training video on ?How to Execute a Bull Call Spread? by clicking here at https://www.madhedgefundtrader.com/ltt-executetradealerts/
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.
Here are the specific trades you need to execute this position:
Sell 37 January, 2016 (TLT) $112 calls at????.???$10.37
Buy to cover short 37 January, 2016 (TLT) $115calls at...$7.45
Net Cost:????????????????..??.?.....$2.92
Profit: $2.92 - $2.70 = $0.22
(37 X 100 X $0.22) = $814 or 0.81% profit for the notional $100,000 portfolio.
