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)- TAKE PROFITS
SELL the iShares 20+ Year Treasury Bond ETF (TLT) October, 2016 $141-$144 in-the-money vertical bear PUT spread at $2.90 or best
Closing Trade
10-4-2016
Expiration Date: October 21, 2016
Portfolio Weighting: 10%
Number of Contracts = 37 contracts
I love taking profits just ahead of a Non farm Payroll Report.
That allows me to cash in while ducking a substantial risk event.
In any case, we have captured 69.69% of the maximum potential profit in this position. It?s not worth running it for another 13 days just to capture the last 30%.
You?re making an 8.25% profit in 7 trading days on this trade. It?s not huge, but is certainly welcome when markets are trading in such incredibly narrow ranges.
This gives us dry powder with which to reestablish this position on the next bond market rally.
Well done and on to the next trade!
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 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.
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 market, investors need every advantage they can get.
Here are the specific trades you need to execute this position:
Sell 37 October, 2016 (TLT) $144 puts at????.???$7.90
Buy to cover short 37 October, 2016 (TLT) $141 puts at..?.$5.00
Net Cost:????????????????..??.?.....$2.90
Profit: $2.90 - $2.67 = $0.23
(37 X 100 X $0.23) = $851 or 8.25% in 7 trading days.
