Trade Alert - (SPY) June 10, 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)- BUY

Buy the S&P 500 SPDR?s (SPY) June, 2015 $214-$217 in-the-money vertical bear put spread at $2.78 or best

Opening Trade

6-10-2015

expiration date: June 19, 2015

Portfolio weighting: 10%

Number of Contracts = 36 contracts

This is your last chance to get the June options off, which will expire in only 7 trading days.

You can pay all the way up to $2.85 for this spread and it still makes sense. If you can?t do the options, stand aside, don?t do it. You only want to be short this market at the right price.

I think the market will continue to grind sideways through the current summer. If we go up, it will be a slow climb of a wall of worry. We are not going to crash in the next two weeks, the only way you can lose money on this position.

For us to lose money on this position, the S&P 500 would have to go to a new all time high in a week. I?ll believe it when I see it.

The breakeven point of this trade is an expiration print of $214.22 at the June 19 expiration. If we trade up there before then, stop out and take a small loss.

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 36 June, 2015 (SPY) $217 Puts at?????$6.95

Sell short 36 June, 2015 (SPY) $214 Puts at..?$4.17
Net Cost:??????????????????.....$2.78

Potential Profit: $3.00 - $2.78 = $0.22

(36 X 100 X $0.22) = $792 or .79% profit for the notional $100,000 portfolio.

It All Become One Giant Paper Chase

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.