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 – (TLT) – STOP LOSS
SELL the iShares 20+ Year Treasury Bond ETF (TLT) November, 2016 $127-$130 in-the-money vertical bull call spread at $2.18 or best
Expiration Date: November 18, 2016
Portfolio Weighting: 10%
Number of Contracts = 40 contracts
We are getting too close to the money, and too close to expiration in this spread that the risk reward has tipped against us.
I am therefore going to stop out of my position in the iShares 20+ Year Treasury Bond ETF (TLT) November, 2016 $127-$130 in-the-money vertical bull call spread.
We held on the first test of the $130 upper leg in this spread. We might not the next time, given the rising chance of a Fed interest rate rise in December.
When one these spreads moves against you, they do so big time. Stopping out here is easy because I know there is a 90% chance that the next trade alert will be a winner.
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 Bull Call Spread
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.
Please 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.
Paid subscribers, 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.
Here Are the Specific Trades You Need to Execute This Position:
Sell 40 November, 2016 (TLT) $127 calls at????.???$4.25
Buy to cover short 40 November, 2016 (TLT) $130 calls a?.$2.07
Loss: $2.52- $2.18 = -$0.34
(40 X 100 X -$0.34) = -$1,360 or -13.49%.