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 - (USO)- BUY
Buy the United States Oil Fund (USO) May, 2016 $8 calls at $1.12 or best
Opening Trade
2-9-2016
expiration date: May 20, 2016
Portfolio weighting: 5%
Number of Contracts = 45 contracts
You can pay all the way up to $1.50 for these options and it still makes sense.
With oil at a 13 year low, and already at the $20 handle with Brent, I don?t mind sticking my toe in here on the long side. But I am doing it with a small limited risk, long dated calls in the United States Oil Fund (USO).
If we can catch a $6 rally in Texas tea back to $32, the value of these call options will double.
If I am dead wrong with my timing, I can get out with only losing half the value of this position. And I have three months for it to work.
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 by clicking here at http://www.madhedgefundtrader.com/ltt-executetradealerts/. You must me logged into your account to view the video.
Here is the specific trade you need to execute this position:
Buy 45 May, 2016 (USO) $8 calls at????.?.??$1.12
Net Cost: (45 contracts X $1.12 X 100) = $5,040
