Trade Alert – (GLD) September 6, 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.

Trade Alert – (GLD)

Sell the (GLD) September, 2012 $153-$157 Call Spread at $3.85 or best

Closing Trade

9-6-2012

expiration date: 9-21-2012

Portfolio weighting: 10%

($10,000/100/$3.85) = 30 Contracts

We have taken 72% of the potential profit from this trade. Gold has moved up a healthy $75 since we laid on this position two weeks ago. European Central Bank president, Mario Draghi, continued his nonstop talking up of quantitative easing, as I expected. So it’s time to take the money and run and use our major to more effective use in more profitable trades.

These are the trades you should execute. These are just ballpark levels because prices are all over the map today, especially for the deep in the money calls with only a few days until expiration:

Sell the September, 2012 (GLD) $153 calls at……………….…$12.25
Buy to cover the September, 2012 (GLD) $157 calls at………….$8.40
Net Premium Proceeds:……………………………..….…………$3.85

Profit: $3.85 – $3.45 = $0.40

(30 X 100 X $0.40) = $1,200, or 1.20% profit for the notional $100,000.

This is the 18th profitable consecutive closing position for the Trade Alert Service. Let the run continue!

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