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 - (GOOG)- SELL-STOP LOSS
SELL the Alphabet (GOOG) October, 2016 $720-$750 in-the-money vertical bull call spread at $21.45 or best
Expiration Date: October 21, 2016
Portfolio Weighting: 10%
Number of Contracts = 4 contracts
The new volatility regime that emerged on Friday requires me to cut my risk.
So, as much as I love (GOOG) for the long term, the short term movement of the shares have suddenly become uncertain.
I am therefore taking a small loss on my position in the Alphabet (GOOG) October, 2016 $720-$750 in-the-money vertical bull call spread.
I took my hedges off too soon by a day, and therefore have to cut some longs as well.
It is much easier to dig yourself out of a small hole, than to claw your way out of a chasm.
If you bought the stock, keep it. I think it could REACH $1,000 over the next three years.
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 on how to execute an options spread, please watch my training video on ?How to Execute a Bull Call Spread? by clicking https://www.madhedgefundtrader.com/ltt-executetradealerts/. You must be logged into your account to view the video.
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.
Here are the specific trades you need to execute this position:
Sell 4 October, 2016 (GOOG) $720 calls at????.?.??$39.00
Buy to cover short 4 October, 2016 (GOOG) $750 calls a?..$17.55
Loss: $23.95 - $21.45 = -$2.50
(4 X 100 X -$2.50) = -$1,000 or -10.44%