When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Trade Alert - (GILD) TAKE PROFITS
SELL the Gilead Sciences (GILD) July, 2017 $62-$65 in-the-money vertical bull call spread at $2.57 or best
Closing Trade
6-22-2017
expiration date: July 21, 2017
Portfolio weighting: 10%
Number of Contracts = 39 contracts
I have to tell you, I absolutely LOVE sending out Trade Alerts on stocks, which then go ballistic.
That's what happened yesterday when I urged readers to buy Gilead Sciences (GILD) at $67.15. This morning, it hit $71.29, up 6.16% from yesterday. The sector is clearly on fire.
Never one to give up the bird in the hand versus two in the bush, I am taking profits in my position, and rolling the money into Biogen (BIIB), which is still rocketing.
With the Gilead Sciences (GILD) July, 2017 $62-$65 in-the-money vertical bull call spread trading at $2.90, we have captured 76.44% of the maximum potential profit in less than 24 hours.
The risk/reward of carry the position all the way into the July 21 option expiration is now longer favorable.
That gives us a one day profit of an eye popping 12.84%!
I think the biotech's and health care sectors will continue to run in an otherwise dull summer market. This is where the fast money will be made.
This brings my 2017 year to date performance to a very solid 25.11%, compared to only 8% for the Dow average.
Well done, and on to the next trade.
If you are uncertain on how to execute an options spread, please watch my training video on How to Execute a Vertical Bull Call Spread by clicking here at http://www.madhedgefundtrader.com/ltt-executetradealerts/.
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Please keep in mind that these are ballpark prices only. There is no telling how much the market can move by the time you get this.
Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage. In today's market, investors need every advantage they can get.
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. Spread pricing can be very volatile with only 13 days to expiration.
If you don't get done, don't worry. There are another 250 Trade Alerts coming at you over the coming 12 months.
Here are the specific trades you need to execute this position:
Buy 39 July, 2017 (GILD) $62 calls at.........................$9.35
Sell short 39 July, 2017 (GILD) $65 calls at.................$6.45
Net Proceeds:.............................................................$2.90
Profit: $2.90 - $2.57 = $0.33
(39 X 100 X $0.33) = $1,287 or 12.84% profit in 1 trading days.
