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)
Buy the iShares Barclay 20+ Year Treasury Bond Fund (TLT) November, 2014 $122-$125 in-the-money bear put spread at $2.47 or best
Opening Trade
10-9-2013
expiration date: November 21, 2014
Portfolio weighting: 10%
Number of Contracts = 40 contracts
You can buy this put spread anywhere from $1.65 - $1.75 and have an excellent chance of making a good profit by the November expiration.
If you can?t do the options, this is a great entry point for the ProShares Ultra Short Treasury 20+ ETF (TBT) at $53.34.
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 that these are ballpark prices only. Spread pricing can be very volatile on expiration months farther out.
Here are the specific trades you need to execute this position:
Buy 40 November, 2014 (TLT) $125 puts at?????$6.70
Sell short 40 November, 2014 (TLT) $122 puts at..??.$4.23
Net Cost:??????????????????.....$2.47
Potential Profit: $3.00 - $2.47 = $0.53
(40 X 100 X $0.53) = $2,120 or 2.12% profit for the notional $100,000 portfolio.
