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.
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Trade Alert - (TLT)- Take Profits
SELL the iShares 20+ Year Treasury Bond Fund (TLT) October, 2016 $129-$132 in-the-money vertical bull call spread at $2.70 or best
Closing Trade
10-13-2016
Expiration Date: October 21, 2016
Portfolio Weighting: 10%
Number of Contracts = 38 contracts
The heightened risk environment created by the possibility that the Democrats may capture the House of Representatives in the November 8th election means I need to cut back risk in my front month options.
I am therefore getting out with a small profit on my iShares 20+ Year Treasury Bond Fund (TLT) October, 2016 $129-$132 in-the-money vertical bull call spread.
If you purchased the TLT, outright sell it too.
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 about how to execute an options spread, please watch my training video How to Execute a Vertical Bull Call Spread.
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 these are ballpark prices at best. After the text alerts go out, prices can be all over the map. There is no telling how much the market will have moved by the time you get this email.
Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage.? In today's volatile markets, individual investors need every advantage they can get.
Here are the specific trades you need to execute this position:
Sell 38 October, 2016 (TLT) $129 calls at????.???$4.80
Buy to cover short 38 October, 2016 (TLT) $132 calls at?.$2.10
Net Cost:????????????????..??.?.....$2.70
Profit: $2.70 - $2.61 = $0.09
(38 X 100 X $0.09) = $342 or 3.44%.
