Trade Alert – (IWM) Expiration, March 15, 2013

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 – (IWM)

Expiration of the (IWM) March, 2013 $82-$86 Bull Call Spread

Closing Trade-not for new subscribers

3-15-2013

expiration date: 3-15-2013

Portfolio weighting: 20% = 60 Contracts

You need to take no action to come out of this position. The long and short calls will cancel each other out, one getting exercised to meet the other. The margin will be freed up in your account on Monday, and the profit added to you cash account. Such is the wonder of in-the-money-call spreads.

This is the 19th consecutive closing position of the Mad Hedge Fund Trader’s Trade Alert Service. We have three more open positions on the books, taking us to 22. That means I only have four more successful trades until I break last summer’s record of 25 winners in a row.

The model trading portfolio should now have 70% cash, 20% in out-of-the-money yen shorts, and 10% in deep out-of-the-money (SPY) shorts.

Here are the expiration values of the options.

long 60 X (IWM) March, 2013 $82 Calls at………………. $12.75
short 60 X (IWM) March, 2013 $86 calls at……………….-$8.75

Net Cost………………………………………….…………. $4.00

Profit = $4.00 – $3.34 = $0.66

($0.66 X 100 X 60) = $3,960, or 3.96% for the notional $100,000 model portfolio

IWM 3-15-13

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