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 – (IWM)- Stop Loss
Sell the Russell 2000 iShares ETF (IWM) May, 2013 $96-$99 put spread at $2.34 or best
expiration date: May 17, 2013
Portfolio weighting: 10%
Number of Contracts = 36 contracts
Note: This is in addition to my earlier stop loss on the (IWM) May $95-$98 in-the-money bear put spread
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 36 May, 2013 (IWM) $99 puts at……………$3.96
Buy to cover short 36 May, 2013 (IWM) $96 puts at..…….$1.62
Loss: $2.80 – $2.34 = -$0.46
(36 X 100 X -$0.46) = -$1.656 or -1.66% loss for the notional $100,000 portfolio.