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 – (SPY)- TAKE PROFITS
SELL the S&P 500 SPDR?s (SPY) August, 2015 $195 – $200 in-the-money vertical bull call spread at $4.76 or best
Closing Trade-NOT FOR NEW SUBSCRIBERS
expiration date: August 21, 2015
Portfolio weighting: 10%
Number of Contracts = 24 contracts
I?m capturing 84% of the potential profit on this trade. That works out to a 16.1% profit on the total position in less than three weeks.
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 take profits on this position:
Sell 24 August, 2015 (SPY) $195 calls at????.???$14.93
Buy to cover short 24 August, 2015 (SPY) $200 calls at..?$10.17
Profit: $4.76 – $4.10 = $0.66
(24 X 100 X $0.66) = $1,584 or 1.58% profit for the notional $100,000 portfolio.