Trade Alert – (GLD) October 12, 2012

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 – (GLD)

Sell the (GLD) December, 2012 $157-$162 Call Spread at $4.25 or best

Closing Trade

New subscribers should take no action on this Trade Alert

10-12-2012

expiration date: 12-21-2012

Portfolio weighting: 10%

($10,000/100/$4.20) = 27 Contracts

Keep in mind that these are ball park prices at best. The best execution can be had by placing your bid in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these spread trades can be enormous. Don’t buy the legs individually or you will end up losing much of your profit up front. Spread pricing can be very volatile on expiration months farther out. These are the trades you should execute:

Sell 27 December, 2012 (GLD) $157 calls at…………$14.75
Sell 27 December, 2012 (GLD) $162 calls at………….$10.50
Net Cost:……………………………….………..………$4.25

Profit: $4.25 – $3.75 = $0.50

that is a 13.3% profit on this individual position in less than one month

(27 X 100 X $0.50) = $1,350, or 1.35% profit for the notional $100,000 portfolio for a three month position.

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