Trade Alert: Trump Engineered Huge 50 BP Rate Cut For Sept, Will It Be Enough?

Trade Alert Instructions

Summary:

(Step 1.) After exiting our options on Apple in step 2, sell your shares of Apple and purchase multiples of 100 shares of the SLV ETF, no more than 15% of total portfolio should follow todays trade alert remaining equities should follow our spy trade.

(Step 2.) Buy to close Aug 09, 2019 $210.00 AAPL Call and Sell to close Aug 09, 2019 $200.00 AAPL Put.

(Step 3.) Sell to close Aug 16, 2019 $16.00 SLV Call

(Step 4.) Per 100 shares of SLV, Sell to open Aug 16, 2019 $15.50 SLV Call and Buy to Open Aug 16, 2019 $15.00 SLV Put

(Step 5.) Per 100 shares of SLV Buy to open one Sep 20, 2019 $30 FXI PUT. Week over week we lost -$4.88/share, new YTD return is 13.90% down from 15.92%.

Step 1. We are selling our shares of Apple today and moving the $168,000 portfolio into the SLV Spot Silver ETF, these shares cost ~$15.50/share so I am buying 10,800 shares of SLV and will be able to purchase 108 option contracts for each part of today’s trade alert. Keep in mind this is relative to a 1.38M total portfolio or 12% of my total portfolio.

This trade alert is completely separate of our buy/hold precious metals portfolio and cryptocurrency portfolio which we will update in our Thursday trade alert.

Step 2. Skip this step if you didn’t write our covered call on AAPL last week and go to step four, otherwise close last weeks trade.

After closing this position sell all shares of Apple.

Step 3. Skip this step if you didn’t write our call option on SLV last week and go to step four, otherwise close last weeks trade.

Step 4. Here is today’s new “atomic bomb proof” trade alert for generating safe income from the SLV ETF with an option collar trade.

Trade Alert Risk Profile Graphic:

Chart:

Step 5. Add extra “juice” to your potential profit by purchasing 1 put option on FXI for every 100 shares of SLV you’re holding relative to this overall trade alert.

Trade Alert Risk Profile Graphic:

Chart:

Here is a summary of our profits week over week:

  • Apple traded from 207.87 to 195.45 for a loss of -$12.42
  • Our short call / long put was opened for a credit of +$1.54 and closed for a credit of +$6.00 for a profit of +$7.54
  • Our SLV call option was bought and sold for $0.08 for a $0.00 return.

This brings our net loss per share of Apple to -$4.88 per share of Apple.

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Disclaimer: Our model portfolio is hypothetical so that we can legally demonstrate real-life trades without actually front-running our own clients. Trading is risky and you can lose your entire investment. These results are based on a hypothetical model portfolio and not real money trades. This is not financial advice. Some staff members of Portfolio Builder actively follow our trade alerts and receive them at the same time as our members via Telegram/txt/email delivery. See full disclaimer here.

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