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 Goldman Sachs (GS) EXPIRATION AT MAXIMUM PROFIT
Expiration of the Goldman Sachs (GS) September, 2017 $205-$210 in-the-money vertical bull call spread at $5.00
EXPIRATION – NOT FOR NEW SUBSCRIBERS
expiration date: September 15, 2017
Portfolio weighting: 10%
Number of Contracts = 23 contracts
We earned a healthy 13.64% on this trade in only 20 trading days.
Profits will be credited to your trading account.
Please note that this is the 24th consecutive trade alert from the Mad Hedge Fund Trader. Every trade Alert since June 23 has been profitable.
What a summer!
As I expected, (GS) went nowhere over the past month.
It didn’t help that the yield on the ten-year Treasury bond hit a new 2017 low at 2.02%. Financials need higher interest rates to boost profits.
This was a bet that the (GS) wouldn’t move below $210 over the 20 trading days, compared to the then current $225.15.
If you didn’t do options and bought the (GS) outright, keep it. I think the shares of financials will double over the next three years as higher rates eventually kick in.
We are already on our way. The Fed will almost certainly raise rates onSeptember 18.
Please note also that this was one leg of an Iron Condor, a bet that a stock won’t move up OR down substantially over a short period of time.
You can most profitably add Iron Condors during big volatility spikes, like the one we got in August.
I already took profits on the other short leg, the (GS) September $235-$240 vertical bear put spread on August 30, taking in an $1,150, 11.23% profit.
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 http://members.madhedgefundtrader.com/ltt-executetradealerts/
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Please keep in mind that these are ballpark prices only. There is no telling how much the market can move by the time you get this.
Be sure you’ve signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage. In today’s market, 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 only 14 days to expiration.
If you don’t get done, don’t worry. There are another 250 Trade Alertscoming at you over the coming 12 months.
Here are the specific trades you need to execute this position:
Expiration of 23 September, 2017 (GS) $205 calls at…………………$20.15
Expiration of short 23 September, 2017 (GS) $210 calls at……$15.15
Profit: $5.00 – $4.40 = $0.60
(23 X 100 X $0.60) = $1,380 or 13.64% profit in 20 trading days.