Trade Alert - (SPY) September 29, 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.
Trade Alert - (SPY)- TAKE PROFITS
SELL the S&P 500 SPDR?s (SPY) October, 2015 $201-$204 in-the-money vertical bear put spread at $2.91 or best
Closing Trade: NOT FOR NEW SUBSCRIBERS
9-29-2015
expiration date: October 18, 2015
Portfolio weighting: 10%
Number of Contracts = 39 contracts
At this morning?s price of $2.91, we have already captured 85.5% of the maximum potential profit in the S&P 500 SPDR?s (SPY) October, 2015 $201-$204 in-the-money vertical bear put spread.
That means we caught a 22.27% profit by holding this position a mere two days.
That?s good enough for me.
Better to take profits here so I can reload on the next rally?.if we ever get one.
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 execute this position:
Sell 39 October, 2015 (SPY) $204 puts at????.?.??$16.60
Buy to cover short 39 October, 2015 (SPY) $201 puts at??$13.69
Net Proceeds:??????????????????.....$2.91
Profit: $2.91 - $2.38 = $0.53
(39 X 100 X $0.53) = $2,067 or 2.07% profit for the notional $100,000 portfolio
