Trade Alert - (HD) September 21, 2015

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.

Trade Alert - (HD)- TAKE PROFITS

SELL the Home Depot (HD) October, 2015 $105-$110 in-

the-money vertical bull call spread at $4.67 or best

?RISK OFF?

Closing Trade

9-21-2015

expiration date: October 16, 2015

Portfolio weighting: 10%

Number of Contracts = 23 contracts

I am not inclined to take small, insignificant profits this fast. You may not be able to cover your commission cost on a profit this small, depending on where you got in.

So, call this one a push. 67 basis points in these conditions is better than a poke in the eye with a sharp stick.

However, the global financial markets are still highly focuses on risk control, and volatility is anything but a distant memory.

The technical reports I received this weekend were nothing less than diabolical, and a test of the August lows appears to be in the cards.

You never want to get too aggressive before October, a month when market crashes are as common as leaves changing colors.

This has nothing to do with Home Depot (HD), which is still one of the best companies to invest in presently.

It revolves more around the main market, which after the Fed?s non-decision last week, is starting to smell a little odiferous.

I?ll go back into (HD) shortly. But I want enter when the other traders are throwing up on their shoes. In conditions like these, take the luxury of being choosy.

Keep in mind that we have ?fast trading? conditions now, so the prices can be anywhere.

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 23 October, 2015 (HD) $105 calls at????.??$11.80
Buy to cover short 23 October, 2015 (HD) $110 calls at?..?$7.13
Net Proceeds:??????????????????.....$4.67
Profit: $4.67 - $4.40 = $0.27

(23 X 100 X $0.27) = $621 or 0.62% profit for the notional $100,000 portfolio.?

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.