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)- STOP LOSS
SELL the iShares Barclays 20+ Year Treasury Bond Fund (TLT) February, 2016 $126-$129 in-the-money vertical bear put spread at $1.74 or best
Closing Trade
1-20-2016
expiration date: February 19, 2016
Portfolio weighting: 10%
Number of Contracts = 39 contracts
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of optionshouse.
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
https://www.madhedgefundtrader.com/ltt-vbpds/
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 39 February, 2016 (TLT) $129 puts at????.???$3.60
Buy to cover short 39 February, 2016 (TLT) $126 puts at..?.$1.86
Net Cost:????????????????..??.?.....$1.74
Potential Profit: $2.50 - $1.74 = -$0.76
(39 X 100 X -$0.76) = -$2,964 or -2.96% profit for the notional $100,000 portfolio.
