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 Barclays 20+ Year Treasury Bond Fund (TLT) October, 2015 $130-$133 in-the-money vertical bear put spread at $2.99 or best
Closing Trade: NOT FOR NEW SUBSCRIBERS
10-7-2015
expiration date: October 16, 2015
Portfolio weighting: 10%
Number of Contracts = 40 contracts
The iShares Barclays 20+ Year Treasury Bond Fund (TLT) October, 2015 $130-$133 in-the-money vertical bear put spread is marked at $3.00 on my screen, so I?ll give you a penny to get done and take profits for the model trading portfolio at $2.99.
If you bought the ProShares Ultra Short 20+ Year Treasury Bond Fund (TBT) instead, take profits for the short term, but keep it for the long term.
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 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 40 October, 2015 (SPY) $133 puts at????.?.??$7.30
Buy to cover short 42 October, 2015 (SPY) $130 puts at.?.$4.31
Net Cost:??????????????????.?.....$2.99
Profit: $2.99 - $2.45 = $0.54
(40 X 100 X $0.54) = $2,160 or 2.16% profit for the notional $100,000 portfolio.
