Trade Alert - (IWM) November 18, 2013
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 - (IWM) - Expiration
Expiration of the Russell 2000 iShares November $112-$114 bear put spread at $2.00
Closing Trade ? Not for new readers
11-18-2013
expiration date: 11-15-2013
Portfolio weighting: 10%
Number of Contracts = 57 contracts.
My bet that the Russell 2000 (IWM) would not top out before the November 15 expiration was a success. You could already see traders moving towards the exit last week when the market volumes started to shrink and volatility vaporized.
The Friday close came in at $110.83, well below the $112 where we would have started to lose money. This means that the position expired at its maximum point of profitability.
This is my twelfth consecutive profitable closing trade since September 24.
Good work traders!
Here is the P&L for this closed position:
Expiration of long ?57 November, 2013 (IWM) $114 puts at..?$3.17
Expiration of short 57 November, 2013 (IWM) $112 puts at..?$1.17
Net Proceeds:????????????....??..??.......$2.00
Profit at expiration: $2.00 - $1.76 = $0.24
($0.24 X 100 X 57) = $1,368, or 1.37% for the notional $100,000 model portfolio.
