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 – (TLT)- TAKE PROFITS
SELL the iShares Barclays 20+ Year Treasury Bond Fund (TLT) September, 2016 $133-$136 in-the-money vertical bull call spread at $2.95 or best
Expiration date: September 16, 2016
Portfolio weighting: 10%
Number of Contracts = 37 contracts
I am old enough to know that when the market offers me a gift, I should take it.
So I am going to take the one-day, 8.45% profit on the long position I picked up over night in the Treasury bond market.
That gets me off the risk hook and gives me dry powder going into the September 20 Fed meeting on interest rates.
This way, I can leg into the trade one more time on the next downward swoon in bond prices.
This means that 15 OUT OF THE LAST 16 TRADE ALERTS HAVE BEEN PROFITABLE, a win rate of 93.75%!
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 Bull Call Spread? by clicking here at
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 37 September, 2016 (TLT) $133 calls at????.???$7.10
Buy to cover short 37 September, 2016 (TLT) $136 calls at?.$4.15
Profit: $2.95 – $2.72 = $0.23
(37 X 100 X $0.23) = $851 or 8.45% profit in one trading day.