Trade Alert - (SPY) February 12, 2018 BUY

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

Trade Alert - (SPY) - BUY

BUY the S&P 500 (SPY) March, 2018 $275-$280 in-the-money vertical BEAR PUT spread at $4.10 or best

Opening Trade

2-12-2018

expiration date: March 16, 2018

Portfolio weighting: 10%

Number of Contracts = 24 contracts

With the Dow Average now up 1,100 from the Friday low, I am going to buy some downside protection. This is to protect against the possibility that the S&P 500 doesn???t go straight up from here.

These strikes are well above the (SPY) 50-day moving average, which I believe will provide substantial resistance on the first run up.

I think the game here for the next month is for the (SPY) to trade in the range between the 200-day moving average at $252.01 and the 50 day moving average at 271.70. That is a very wide range to trade.

Don???t pay more than $4.50 for this position or you???ll be chasing.

If you don???t do options, stand aside. This is an options protection strategy only.

Here are the specific trades you need to execute this position:

Buy 24 March 2018 (SPY) $280 puts at??????.?????????$16.50

Sell short 24 March 2018 (SPY) $275 puts at?????????.$12.40
Net Cost:??????????????????????????????.????????????..??????.???.....$4.10

Potential Profit: $5.00 - $4.10 = $0.90

(24X 100 X $0.90) = $2,160 or 21.95% in 23 trading days.

To see how to enter this trade in your online platform, please look at the order ticket above, which I pulled off of Interactive Brokers.

If you are uncertain on how to execute an options spread, please watch my training video on How to Execute Vertical Call and Put Debit Spreads by clicking here.

You must be logged into your account to view the video.

Please keep in mind that these are ballpark prices only. There is no telling how much the market can move by the time you get this.

Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage. In today's market, investors need every advantage they can get.

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 close to expiration.

If you don't get done, don't worry. There are another 250 Trade Alerts coming at you over the coming 12 months.

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