Trade Alert - (MS) August 16, 2012
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 - (MS)
Buy the Morgan Stanley (MS) October $13-$15 put spread at $0.72 or best
Opening Trade
8-16-2012
expiration date: 10-19-2012
Portfolio weighting: 5%
($5,000/100/$0.72) = 60 Contracts
If you fall back down to the bottom of the six month range for (MS) at $12.50, the value of this put spread will rise from $0.72 to $2.00, giving you a profit of $1.28, or 178%. That would add (60 X 100 X $1.28) = $7,680 or 7.68% profit for the notional $100,000 portfolio.
To execute this trade:
Buy the October, 2012 (MS) $15 puts at????.$1.08
Sell short the October, 2012 (MS) $13 puts at??$0.36
Net Premium Costs:??.............??.??????...$0.72
