Trade Alert - (SPY) August 17, 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. 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 - (SPY)- TAKE PROFITS
Sell the S&P 500 SPDR?s (SPY) August, 2015 $214-$217 in-the-money vertical bear put spread at $2.98 or best
Closing Trade-NOT FOR NEW SUBSCRIBERS
8-17-2015
expiration date: August 21, 2015
Portfolio weighting: 10%
Number of Contracts = 40 contracts
We have sucked this lemon dry.
At this morning?s opening mark of $2.98 you have captured 96% of the potential profit in the S&P 500 SPDR?s (SPY) August, 2015 $214-$217 in-the-money vertical bear put spread.
You have earned an eye-popping profit of 19.2% in a mere 15 trading days. The risk/reward no longer favors running the position into expiration in four trading days.
The only reason to keep this position into the Friday expiration is if you are a cheapskate and don?t want to pay the closing commissions.
In these tortuous market conditions the cautious, the circumspect and the wall flowers have been rewarded.
Who knows who will devalue next? Which market will crash? Will the melt down in energy continue? Does Chairman Janet have a surprise in store for us? We haven?t heard for Vladimir Putin in a while.
And I think this is the Trade Alert I phoned in from the back of a camel in the Sahara Desert. Note to self: find more camels. Are there any in the San Francisco Bay Area? Can I rent a camel? How much do they cost to feed? Maybe there?s a camel app I haven?t heard about?
I have already replaced this outgoing position with another one, one month out with the same strikes, the S&P 500 SPDR?s (SPY) September, 2015 $214-$217 in-the-money vertical bear put spread.
I think that investors will remain frozen, like a deer in the headlights, until at least the end of this month.
We might as well cash in on their inaction and indolence. The new all time high in the (SPY) above $214 is coming, just not yet.
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 close this position:
Sell 40 August, 2015 (SPY) $217 puts at?????$8.67
Buy to cover short 40 August, 2015 (SPY) $214 puts at?..?$5.69
Net Proceeds:????????????????.....$2.98
Profit: $2.98 - $2.50 = $0.48
(40 X 100 X $0.48) = $1,920 or 1.92% profit for the notional $100,000 portfolio.
