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. This is your chance to ?look over? John Thomas? shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen.
Trade Alert - (XLI)
Sell the Industrials Select Sector SPDR (XLI) December, 2013 $45-$48 call spread at $2.95 or best
Closing Trade ? not for new readers
11-25-2013
expiration date: December 20, 2013
Portfolio weighting: 10%
Number of contracts = 38 contracts
No money left in this baby. At this morning?s opening we have 89% of the potential profit with four weeks left to the December expiration. Time to take profits and roll the money into a new position.
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:
Sell 38 December, 2013 (XLI) $45 calls at?????$5.40
Buy to cover short 38 December, 2013 (XLI) $48 calls at..??.$2.45
Net Cost:?????????????????.....$2.95
Profit: $2.95 - $2.55 = $0.40
(38 X 100 X $0.40) = $1,520 or 1.52% profit for the notional $100,000 portfolio.
