Trade Alert - (SPY) November 18, 2013
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) - Expiration
Expiration of the SPDR S&P 500 (SPY) November, 2013 $170-$173 bull call spread at $3.00
Closing Trade ? Not for new readers
11-18-2013
expiration date: November 15, 2013
Portfolio weighting: 10%
Number of Contracts = 36 contracts
My expectation that the S&P 500 would not fall below $173 before the November expiration delivered us another winner. In fact, we never even came close. The lowest we got during the life of the position was $175, and that was only the bottom of a spike down. On Friday, the (SPY) closed at? $180.05, a full $7.05 points out of the money. That allowed the SPDR S&P 500 November, 2013 $170-$173 bull call spread to close at its maximum point of profitability.
This was a total chip shot of a trade to do in a runaway bull market, like the one we have. This is probably the closest to what I call a ?free money? trade that you will ever see. If anything, I should have been more aggressive, moving the strikes up a couple of dollars. But there is a rising risk here that I overplay my hand, hence, the natural cautiousness.
This is the 11th consecutive closing profitable Trade Alert since September 25. My record is 25.
Good job traders!
Here is the closing P&L for this closed this position:
Expiration of long 36 November, 2013 (SPY) $170 calls at?$10.05
Expiration of short 36 November, 2013 (SPY) $173 calls at...$7.05
Net Proceeds:??????????????????.....$3.00
Realized Profit at expiration: $3.00 - $2.65 = $0.35
(36 X 100 X $0.35) = $1,260 or 1.26% profit for the notional $100,000 portfolio.
