Trade Alert - (SPY) October 13, 2016
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.
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Trade Alert - (SPY)- TAKE PROFITS
SELL the S&P 500 SPDR?s (SPY) October, 2016 $219-$222 in-the-money vertical bear put spread at $2.97 or best
Closing Trade
10-13-2016
Expiration Date: October 21, 2016
Portfolio Weighting: 10%
Number of Contracts = 41 contracts
A 9.59% profit in three trading days. I?ll take that all day long.
With 89.66% of the maximum potential profits in hand, I?m going to cash on my position in the S&P 500 SPDR?s (SPY) October, 2016 $219-$222 in-the-money vertical bear put spread.
That way, I get to duck the risk going into the October 21st options expiration.
Who knows WHAT is going to come out about Donald Trump over the weekend.
When market volatility increases, dry powder rises in value. No one every got fired for taking a profit.
This morning we got assists from terrible Chinese trade data, and a US missile attack against Yemen.
You're welcome. Ring the cash register, and go on to the next trade.
To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of optionshouse.
If you are uncertain about how to execute an options spread, please watch my training video How to Execute a Vertical Bear Put Debit Spread
Keep in mind these are ballpark prices at best. After the text alerts go out, prices can be all over the map. There is no telling how much the market will have moved by the time you get this email.
Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage.? In today's volatile markets, individual 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 with only 6 days to expiration.
Here are the specific trades you need to execute this position:
Sell 41 October, 2016 (SPY) $222 puts at????.?.??$9.80
Buy to cover short 41 October, 2016 (SPY) $219 puts.??.$6.83
Net Cost:????????????????????......$2.97
Potential Profit: $2.97 - $2.71 = $0.26
(41 X 100 X $0.26) = $1,066 or 9.59% profit in 3 trading days.
