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Trade Alert - (NYSE:IBM)- TAKE PROFITS
SELL the IBM May, 2017 $150-$155 in-the-money vertical bull call spread at $4.90 or best
Closing Trade-NOT FOR NEW SUBSCRIBERS
expiration date: May 19, 2017
Portfolio weighting: 10%
Number of Contracts = 24 contracts
Yes, it is possible to make an 18.93% profit on a single position in four trading days.
I know, because I just did it with the IBM May, 2017 $150-$155 in-the-money vertical bull call spread.
Moderate former investment banker Emmanuel Macron's substantial win in the French presidential election sent all markets rocketing this morning.
Nationalist Marine La Pen has gone down in flames. She has no chance of winning the run off in two weeks.
We have gone from "RISK OFF" to "RISK ON" in a heartbeat.
However, options prices are a little squirrelly this morning, and somewhat out of touch with reality.
I don't believe the $4.97 price on the screenshot below. In fact, I've seen prints as high as $5.10 this morning.
So I'm going to give you all the way down to $4.90 to get this trade done.
If you didn't do the options and bought the shares instead, keep them. There are a couple more bucks of upside.
Well done, and on to the next trade. This is going to be an interesting year!
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 this 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 on farther month expirations.
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 service for Trade Alerts. When seconds count, this feature offers a definite 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 24 May, 2017 IBM $150 calls at…….……………$12.00
Buy to cover short 24 May, 2017 IBM $155 calls at……….$7.10
Profit: $4.90 - $4.12 = $0.78
(24 X 100 X $0.78) = $1,872 or 18.93% profit in four trading days.
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