Trade Alert - (SPY) June 3, 2015
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)- TAKE PROFITS
SELL the S&P 500 SPDR?s (SPY) June, 2015 $202-$207 in-the-money vertical bull call spread at $4.64 or best
Closing Trade-NOT FOR NEW SUBSCRIBERS
6-3-2015
expiration date: June 19, 2015
Portfolio weighting: 10%
Number of Contracts = 23 contracts
You can SELL this spread anywhere around the $4.64 level and keep one third of the potential profit, or 5.5% on the position.
The stock market has seen the narrowest range in a century during the first five months of this year. This is torture.
Take the gift.
I realize that after paying commissions, some of you will break even on the position. But sometimes the market has nothing to give you.
This is one of those times.
The S&P 500 is up nearly a point from where we slapped on this position during last Friday?s selloff. All of our profit has some from accelerated time decay and plummeting volatility.
By coming out today, I get to duck the risk of a ferocious move against me that could occur with the Friday nonfarm payroll. This is a bird in the hand versus three in the bush trade.
Everyone I know is bailing on this market, as the trading conditions are atrocious. The volatility Index (VIX) is saying that we are going to flat line for the next two months. Nothing makes any sense.
Better to use the time to clear heads, maintain performance and cash, and wait until the market hands me a golden trade on a platter.
In other words, wait for the next fat pitch.
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 on expiration months farther out.
If the price of this spread has moved more than 5% by the time you receive this Trade Alert, don?t chase it. Wait for the next one. There are plenty of fish in the sea.
Here are the specific trades you need to execute this position:
Sell 23 June, 2015 (SPY) $202 Calls at?????$10.68
Buy to cover short 23 June, 2015 (SPY) $207 Calls at..?$6.04
Net Proceeds:?????????????????.....$4.64
Profit: 4.64 - $4.40 = $0.24
(23 X 100 X $0.24) = $552 or 0.55% profit for the notional $100,000 portfolio.
