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Trade Alert - (CSCO) March 6, 2015

Trade Alert

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 - (CSCO)- TAKE PROFITS

Sell the Cisco Systems (CSCO) March, 2015 $27-$29 in-the-money vertical bull call spread at $1.75 or best

Closing Trade

3-6-2015

expiration date: March 20, 2015

Portfolio weighting: 10%

Number of Contracts = 59 contracts

 

You can sell this position all the way down to $1.69 and still get out for cost.

If you hold the stock, hang on for the medium to long term. I think we are going to $35/share for Cisco over time, and am looking o return to my position on my next dip.

With the March, 2015 $27-$29 in-the-money vertical bull call spread we are just too close to expiration for things to go wrong and then right again. Better to exercise some risk control here and get out.

The white hot 295,000 February nonfarm payroll figure certainly does not push the prospect for the first interest rate rise in a decade further out. Only 230,000 had been expected. This is the twelfth consecutive month that we have seen a plus 200,000 print.

Also, when you throw good news on a market and it fails to rally, you sell it. Better to run with our tails between our legs. This year punishes those who let hair grow on their profitable positions.

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 59 March, 2015 (CSCO) $27 calls at?????$2.26

Buy to cover short 59 March, 2015 (CSCO) $29 calls at..?$0.51
Net Cost:??????????????????.....$1.75

Profit: $1.75 - $1.69 = $.06

(59 X 100 X $0.06) = $354 or 0.35% profit for the notional $100,000 portfolio.

CSCO 3-6-15

CISCO Logo

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