Trade Alert - (SPY) October 19, 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. 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)- BUY

BUY the S&P 500 SPDR (SPY) November, 2016 $220-$223 in-the-money vertical bear put spread at $2.52 or best

Opening Trade

10-19-2016

Expiration Date: November 18, 2016

Portfolio Weighting: 10%

Number of Contracts = 38 contracts

You can pay up to $2.70 for this position and it still makes sense.

It is a bet that the S&P 500 (SPY) won?t trade above $220 at the November options expiration in 22 trading days. That would be a new all time high.

I believe we are going to new highs, but just not quite yet.

If you can?t trade options, buy bigger dips in the (SPY) outright.

This position will help partially hedge our existing position in the long (SPY) November $203-$208 vertical bull call spread.

To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of optionshouse.

If you are uncertain about how to execute this options spread, please watch my training video How to Execute a Vertical Bear Put Debit Spread.

Please keep in mind these are ballpark prices at best. After the text alerts go out, prices can be all over the map. There is no telling how much the market will have moved by the time you get this email.

Paid subscribers, be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage.? In today's volatile markets, individual 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 22 days to expiration.

Here Are the Specific Trades You Need to Execute This Position:

Buy 38 November, 2016 (SPY) $223 puts at????.?.??$8.70

Sell short 38 November, 2016 (SPY) $220 puts at.???.?..$6.18
Net Cost:????????????????????......$2.52

Potential Profit: $3.00 - $2.52 = $0.48

(38 X 100 X $0.48) = $1,824 or 19.04% profit in 22 trading days.

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.