Trade Alert - (SPY) EXPIRATION April 18, 2016
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.
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Trade Alert - (SPY)-EXPIRATION
EXPIRATION of the S&P 500 SPDR?s (SPY) April, 2016 $182 Puts at zero
?Closing Trade - NOT FOR NEW SUBSCRIBERS
4-18-2016
expiration date: April 15, 2016
Portfolio weighting: 5%
Number of Contracts = 8 contracts
This position was the downside hedge for all of the ?RISK OFF? positions I have bought over the last three months.
While we lost 4.87% of our model trading portfolio, we made more than that in the offsetting long positions.
When people buy fire insurance, they never complain when their house doesn?t burn down. This time, the house didn?t burn down.
In a normal market I could have bailed on these puts as the markets breathed, getting out at breakeven or a small loss on a subsequent market dip.
But markets are anything but normal this year. They don?t breathe, nor do they behave rationally. In fact, they seem to hold their breath for ceaseless periods of time.
We witnessed the sharpest move up in the shortest time in market history as investors stampeded to jump on the yield train before it left the station.
If you blinked, you missed it.
On to the next trade.
Here are the specific numbers you need to close this position:
Expiration of 8 April, 2016 (SPY) $182 puts at???.??$0
Loss: $6.09 - $0 = $6.09
Loss: (8 contracts X $6.09 X 100) = $4,872, or 4.87% for the model $100,000 trading portfolio.
?Time for Some Downside Protection
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