When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
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Trade Alert - (VXX) SELL TAKE PROFITS
SELL the IPath S&P 500 VIX Short Term Futures ETN (VXX) August, 2017 $10.00-$10.50 in-the-money vertical bull call spread at $0.49 or best
Closing Trade
8-10-2017
expiration date: August 18, 2017
Portfolio weighting: 5%
Number of Contracts = 116 contracts
I'll take the bird in the hand versus two in the bush.
A better description would be to take the 13 cents, versus the penny in the bush.
At 49 cents we have captured 92.86% of the maximum potential profit in this position.
The risk/reward of carry on for the remaining 6 days to the August 18 expiration is no longer favorable.
You see kids hanging on for the last penny all days long. Old salts? Never!
Clocking a 36.11% profit in only nine trading days in this lifeless market is much better than a poke in the eye with a sharp stick.
This trade takes our year to date performance to 27.20%, and our 7 year performance to 245.76%, yet another new all time high.
Nine out of the last ten trade alerts have been profitable, a success rate of 90%.
Under promise and over deliver. That has always been my secret to success.
This was a bet that the (VXX) would not trade below $10.50 by the August 18 expiration in 15 trading days. As I write this, stands at $12.07.
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of Interactive Brokers.
This Trade Alert takes me to a rare 90% cash position, having dumped all of my technology stocks at the top last month.
The game going forward is to keep positions small and buy the Volatility Index (VIX) and gold (GLD) on the dips and sell the rallies in the S&P 500 (SPY), US treasury bonds (TLT), and oil (USO) on any rallies.
I am staying out of the foreign exchange market for now, as the US dollar is extremely oversold on war fears.
This "RISK OFF" correction should only last a month.unless special counsel Robert Mueller has other ideas.
If you are uncertain on how to execute an options spread, please watch my training video on How to Execute a Vertical Bull Call Spread" by clicking here at http://members.
You must be logged into your account to view the video.
Please keep in mind that these are ballpark prices only. There is no telling how much the market can move by the time you get this.
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.
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 with only 6 days to expiration.
If you don't get done, don't worry. There are another 250 Trade Alertscoming at you over the coming 12 months.
Here are the specific trades you need to execute this position:
Sell 116 August, 2017 (VXX) $10.00 calls at.........................................$2.00
Buy to cover short 116 August, 2017 (VXX) $10.50 calls at ..............$1.51
Net Cost:...............................................................................................
Profit: $0.49 - $0.36 = $0.13
(116 X 100 X $0.13) = $1,508 or 36.11% profit in 9 trading days.
