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 – (SPY)
Sell the SPDR S&P 500 (SPY) December, 2012 $137 Puts at $0.92 or best
expiration date: 12-21-2012
Portfolio weighting: 9.2% down to zero
Number of Contracts = 30 contracts
Sell 30 December, 2012 (SPY) $137 Puts at……………$0.92
Total Loss: $2.85 (average) – $0.92 = $1.93
($1.93 X 100 X 30) = $5,790, or 5.79% for the notional $100,000 model portfolio.
I’m using this dip to take off my downside hedge that protected my long (SPY) 1/$131-$136 bull call spread. I doubt we’ll get sell offs below the $136 strike by the December 21 expiration from here on. The trend for the market is up at least until January.