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 – (VXX)- TAKE PROFITS
SELL the iPath S&P 500 Short Term Futures ETN (VXX) September, 2016 $30-$33 in-the-money vertical bull call spread at $2.80 or best
Expiration date: September 16, 2016
Portfolio weighting: 10%
Number of Contracts = 41 contracts
This trade gives us an amazing 14.28% profit in a four trading days, which is an out-of-the-park home run in this miserable environment.
That is 63.7% of the maximum potential profit in this position.
The rule on trading the Volatility Index (VIX) is to SELL EVERY SPIKE, as they are few and far between!
We?ve got one this morning, so I?m taking profits on my position in the iPath S&P 500 Short Term Futures ETN (VXX) September, 2016 $30-$33 in-the-money vertical bull call spread.
This gets us out of the dangerous and unpredictable terra incognita of the August Nonfarm Payroll report on Friday. It also lets us duck the big volatility collapse you usually get ahead of a three-day weekend.
If you bought the (VXX) outright – take the short term profit.
Well done and on to the next trade!
This makes 9 out of the last 10 consecutive Trade Alerts profitable.
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 Bull Call Spread? by clicking here at https://www.madhedgefundtrader.com/ltt-executetradealerts/. You must be logged into your account to view the video.
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 41 September, 2016 (VXX) $30 calls at????.?.??$6.50
Buy to cover short 41 September, 2016 (VXX) $33 calls at?..$3.70
Profit: $2.80 – $2.45 = $0.35
(41 X 100 X $0.35) = $1,435 or 14.28% in 4 trading days