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 – (SCTY)
Buy the Solar City (SCTY) December, 2014 $47.50-$52.50 in-the-money vertical call spread at $4.40 or best
expiration date: December 19, 2014
Portfolio weighting: 10%
Number of Contracts = 22 contracts
You can buy the Solar City (SCTY) December, 2014 $47.50-$52.50 in-the-money vertical call spread anywhere from $4.30 – $4.70 and have an excellent chance of making a decent profit.
If you can?t do call spreads buy the stock outright at any weakness.
These options are somewhat illiquid. So the best way to place an order is to place a limit in the middle of the current wide spread. If you don?t get done in a few minutes, then cancel you order and place a new one 5 cents higher. If that doesn?t work, then walk it up another 5 cents
For a detailed training video on how to execute a vertical bull call spread, please click here: https://www.madhedgefundtrader.com/ltt-executetradealerts// .
Extended research piece to follow as soon as I refill my coffee.
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.
If the price of this spread has moved more than 5% by the time you receive this Trade Alert, don?t chase it. Wait for the next one. There are plenty of fish in the sea.
Here are the specific trades you need to execute this position:
Buy 22 December, 2014 (SCTY) $47.50 calls at?????$9.50
Sell short 22 December, 2014 (SCTY) $52.50 calls at..??.$5.10
Potential Profit: $5.00 – $4.40 = $0.60
(22 X 100 X $0.60) = $1,320 or 1.32% profit for the notional $100,000 portfolio.