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There's an old expression in the U.S. Army: Soldiers are often forced to "hurry up and wait."
That's what it's like much of the time for those trading the loophole trade, or spread trades (debit or credit). To realize maximum profit or get paid your money on this trade, you have to wait until the expiration of the option contracts.
That's what we're now facing with our Qualcomm Inc. (Nasdaq: QCOM) trade – and I want you to make money from this situation.
First watch my video, which shows you exactly what to do. I also flesh out this advice below.
How to Maximize Your Potential in Qualcomm
On July 8, the Qualcomm trade was a Debit Spread using puts. Specifically, it was a July15 67.50/70 P spread. This was a Money Calendar Sell candidate, as you can see:
The 10-year look at QCOM's price moves from the start to end date show an average profit move down of $1.99. The last three years have averaged around a $2.50 drop in price.
The concern for some traders undertaking this type of trade, a spread trade, is waiting until expiration to get the chance at full profitability. In this case, the trade day's length is 30. For some, waiting a whole month to get paid causes impatience and frustration. Not being able to get the full profit right away bugs them.
If you're an impatient trader and you'll start squirming in your seat if you can't close the trade for maximum profitability within a week, this strategy of trading spreads might not be for you.
But for those of you perfectly content with letting the trade run its course for a month, and waiting the necessary time for the profits to potentially roll in and give you a shot at +61%, then you will like this more patient trading approach.