Trade Alert - (SPY) May 12, 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) May, 2015 $215-$218 in-the-money vertical bear put spread at $2.98 or best
Closing Trade ? NOT FOR NEW SUBSCRIBERS
5-12-2015
expiration date: May 15, 2015
Portfolio weighting: 10%
Number of Contracts = 37 contracts
Congratulations!
You just made money on the short side in a bull market, a feat most professionals are not able to successfully pull off.
Well done!
With only three trading days to expiration, we have already milked this baby for all it is worth. If you slapped this position on when I did two weeks ago, you have earned a tidy 12% profit.
Therefore, it is time to free up some capital and sell the S&P 500 SPDR?s (SPY) May, 2015 $215-$218 in-the-money vertical bear put spread at $2.98 or best.
Don?t hold me to these prices, as they are all over the map on this nonfarm payroll Friday.
If you are a cheapskate and wish to hold on until the Friday, May 15 expiration to avoid paying the extra closing commission, that?s fine by me. The brokers already have enough yachts as it is.
The $215 strike is some seven points away. There is no way the market is going to new all time highs to get there in the next week, especially with all the turmoil going on in the European bond, foreign exchange, and oil markets.
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:
sell 37 May, 2015 (SPY) $218 puts at?????$7.65
Buy to cover short 37 May, 2015 (SPY) $215 puts at..?$4.67
Net Proceeds:???????????????.....$2.98
Profit: $2.98 - $2.66 = $0.32
(37 X 100 X $0.32) = $1,184 or 1.18% profit for the notional $100,000 portfolio.
