Trade Alert - (ABX) September 15, 2017
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 - (ABX)- BUY
Buy the Barrick Gold (ABX) October, 2017 $15-$16 in-the-money vertical BULL CALL spread at $0.88 or best
Opening Trade
9-15-2017
expiration date: October 20, 2017
Portfolio weighting: 10%
Number of Contracts = 112 contracts
With my Mad Hedge Marketing Timing Index approaching severely overbought territory at 74, I absolutely HAVE to start adding some "RISK OFF" downside protection.
A stake in Barrack Gold will do the job nicely.
Don't pay more than $0.92 for this position.
This is a bet that the (ABX) won't move below $16 over the next 25 trading days by the October 20 options expiration, compared to the current $17.28.
I believe that on the next "RISK OFF" move, gold will break out to a new 2017 high.
If you can't do options buy the (ABX) outrightt. It is going higher as portfolio managers rush to protect their portfolios in the present uncertain and highly volatile conditions.
Barrick Gold is the world's largest gold miner, headquartered in Toronto, Canada, with a rock solid balance sheet.
It's average cost of gold production is $798 and ounce, compared to the current $1,291. It is also a major producer of copper, which often is found with gold ore.
It produced a whopping 5.92 million ounces of gold in 2016, with 75% coming from a secure North America.
At the end of last year, it boasted 85.9 million ounces of gold reserves.
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of Interactive Brokers.
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://members.
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.
Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.
Here are the specific trades you need to execute this position:
Buy 112 October, 2017 (ABX) $15 calls at .............................................$2.40
Sell short 112 October, 2017 (ABX) $16 calls at........................................$1.52
Net Cost:....................................................................................................
Potential Profit: $1.00 - $0.88 = $0.12
(112 X 100 X $0.12) = $1,344 or 13.63% in 25 trading days.
