Trade Alert – (GOOG) December 18,2012

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 – (GOOG)

Sell the (GOOG) January, 2013 $600-$650 Call Spread at $49.60 or best

Closing Trade-for existing holders only

12-18-2012

expiration date: 1-18-2013

Portfolio weighting: 10%

($10,000/100/$49.60) = 2 Contracts

We’ve got another home run on our (GOOG) January, 2013 $600-$650 Call Spread, so I am taking profits here as well. There is only eight basis points left in this 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 buy the legs individually or you will end up losing much of your profit up front. Keep in mind that these are ballpark prices only. Spread pricing can be very volatile on expiration months farther out.

These are the trades you should execute:

Sell 2 X (GOOG) January, 2013 $600 Calls at…………………. $130.00
Buy to cover short 2 X (GOOG) January, 2013 $650 calls at.….-$80.40

Net Proceeds………………………………………………………$49.60

Profit: $49.60 – $40.55 = $9.45

($9.05 X 100 X 2) = $1,810, or 1.81% for the notional $100,000 model portfolio.

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