Trade Alert - (TLT) September 1, 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.
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Trade Alert - (TLT)- TAKE PROFITS
SELL the iShares Barclays 20+ Year Treasury Bond Fund (TLT) September, 2016 $143-$146 in-the-money vertical bear put spread at $2.82 or best
Closing Trade
9-1-2016
Expiration date: September 16, 2016
Portfolio weighting: 10%
Number of Contracts = 39 contracts
It doesn?t get any easier than this.
I get to take a profit on a double short position the day before a pivotal Nonfarm Payroll report.
By taking profits on the iShares Barclays 20+ Year Treasury Bond Fund (TLT) September, 2016 $143-$146 in-the-money vertical bear put spread, I get to cut my risk in half ahead of an important market moving event.
This allows us to capture 59.65% of the maximum potential profit in this position.
This means that 10 out of the last 11 consecutive Trade Alerts were profitable for a 91% win rate, most immediately so. August was a perfect month with a 100% win rate on our six trades.
Bobbing and weaving and taking quick profits in this ?go nowhere? market is working BIG TIME.
This was a bet that the ten-year Treasury bond wouldn?t dip below 1.35% by September 16. Right now, it is 1.62%.
If you have the ProShares Ultra Short 20 Year + Treasury ETF (TBT), keep it. You can make a lot of money trading the $30-$35 range.
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 on how to execute an options spread, please watch my training video on ?How to Execute a Vertical Bear Put Spread? by clicking here at
https://www.madhedgefundtrader.com/ltt-vbpds/
The best execution can be had by placing your bid for the entire spread in the mid 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 September, 2016 (TLT) $146 puts at????.???$7.10
Buy to cover short 39 September, 2016 (TLT) $143 puts at.?.$4.28
Net Cost:????????????????..??.?.....$2.82
Profit: $2.82 - $2.55 = $0.27
(39 X 100 X $0.27) = $1,053 or 10.58% profit over the 7 trading days.
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