Trade Alert – (SPY) January 28, 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. 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 – (SPY)

Sell the SPDR S&P 500 (SPY) February, 2013 $137-$142 call spread at $4.93 or best

Closing Trade-not for new readers

1-28-2013

expiration date: 2-15-2012

Portfolio weighting: 10%

Number of Contracts = ($10,000/100/$4.93) = 22 contracts

We have sucked the marrow out of this one so it is time to take profits. The SPDR S&P 500 (SPY) February, 2013 $137-$142 call spread has soared from $4.22 to $4.93 in just 15 trading days. At this morning’s opening, we have coined 91% of the potential $5.00 value of the trade. I want to free up the cash to roll into a more aggressive March position.

Sell 22 February, 2013 (SPY) $137 calls at………………………$13.33
Buy to cover Short 22 February, 2013 (SPY) $142 calls at …….$8.40
Net Cost:……………………………….……………………….……….$4.22

Profit: $4.93 – $4.22 = $0.71

($0.71 X 100 X 22) = $1,562 – 1.56% for the notional $100,000 model portfolio.

SPY 1-28-13

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