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Mad Hedge Fund Trader

Follow Up to Trade Alert - (FXE) July 3, 2014

Trade Alert

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.

Further Update to: Trade Alert - (FXE)

Buy the Currency Shares Euro Trust (FXE) August, 2014 $136-$138 in-the-money bear put spread at $1.72 or best

Opening Trade

7-3-2014

Expiration date: August 15, 2014

Portfolio weighting: 10%

Number of Contracts: 58

We saw the multi month selloff going into the European Central Bank?s announcement of interest rate cuts and quantitative easing last month. Since then we have seen a classic ?buy the rumor, sell the news? short covering rally that has taken the euro up a counterintuitive two points.

The second move is just about to run out of steam.

Weakening data from the European economy, which is trailing that of the US, Japan, Australia and even China, suggests that the Euro zone will see more easing before it experiences a tightening.

That is bad for the Euro and great for the US dollar. So I am happy to sell short the beleaguered European currency here.

I have also been devious in the selection of my strikes. The near $136 put strike that I am shorting here against the long $138 put is exactly 50% of the move down from the double top at the March and May highs.

It also helps that the (FXE) was firmly rejected from the 50 day moving average.

We are getting a further assist from the calendar, which is giving us an unusually short expiration on August 15. Most of Europe will be closed until then.

I am also in a rush to get these out before the long July 4 weekend sucks out what little premium is left in the options market.

Finally, I can use the Currency Shares Euro Trust (FXE) August, 2014 $136-$138 in-the-money bear put spread to hedge my existing position in the (SPY) July $199-$202 bear put spread. US stock market weakness generally triggers a strong dollar and a weak Euro.

Keep in mind that the options market is highly illiquid now, so don?t hold me to these prices. They are ballpark estimates, at best.

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 expiration months farther out.

If the price of this spread has moved more than 5% by the time you receive this Trade Alert, don?t chase it. Wait for the next one. There are plenty of fish in the sea.

Here are the specific trades you need to execute this position:

Buy 58 August, 2014 (FXE) $138 puts at?????$3.45

Sell short 58 August, 2014 (FXE) $136 puts at..??.$1.73
Net Cost:??????????????????.....$1.72

Potential Profit: $2.00 - $1.72 = $0.22

(58 X 100 X $0.28) = $1,624 or 1.62% profit for the notional $100,000 portfolio.

FXE 7-2-14

Euro SymbolThe Time to Dump the Euro is Here

https://www.madhedgefundtrader.com/wp-content/uploads/2014/07/Euro-Symbol.jpg 306 329 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-07-03 10:31:532014-07-03 10:31:53Follow Up to Trade Alert - (FXE) July 3, 2014
Mad Hedge Fund Trader

Follow Up to Trade Alert - (GM) July 3, 2014

Trade Alert

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.

Further Update to: Trade Alert -(GM)

Buy the General Motors (GM) August, 2014 $33-$35 in-the-money bull call spread at $1.79 or best

Opening Trade

7-3-2014

Opening Trade

expiration date: August 15, 2014

Portfolio weighting: 10%

Number of Contracts = 56 contracts

?
It is safe to say that all of the bad news is finally in the price at General Motors (GM). In the wake of the latest batch of recalls this week, the total number of recalls now equals virtually all of the company?s production of the last five years.

Woe to the outside supplier who provided those faulty, but cheap ignition switches to the beleaguered company!

What is more important ace mediator, Kenneth Feinberg, has finally come up with a number to offer the grieving families of the 17 who were killed driving GM?s deathtraps of yore. A fatality is now worth $1 million, and the company is offering as little as $20,000 for lesser accidents.

GM should put these numbers on their new car stickers.

In all honesty, this is just a ?feel good? gesture. The company that is actually responsible for these deaths went bankrupt in 2009. The new GM bears no legal liability whatsoever.

However, the company needs to preserve the value of its brand. The GM logo still goes out with every vehicle the firm manufacturers. So, it will do the right thing for these victims.

Even if you apply these numbers to the much higher number of deaths claimed by plaintiffs? lawyers, more than 88, the total liability will not be enough to put a substantial dent in GM?s earnings. It is really just sofa change for them.

Many of the higher figures include drunken driving deaths and fatalities of those driving at high speed without seatbelts. But every law school graduate out there is gunning for a piece of the action. Don?t you just love America!

So all of this bad news is really good news in disguise. This will enable GM shares to catch up with those at Ford and Toyota, which have been on a tear this year. The industry seems poised to reach annual production of 17 million in 2014, an eight-year high. This will be great for profits for everyone.

I knew as much a few weeks ago, when I learned of massive insider buying of stock at GM all the way down to the middle management level. As has so often been the case this year, I waited for a dip that never came.

Now that the upside breakout is undeniable, I have to jump in. The shares are starting from such a low base that even if a 5%-10% correction comes, the August, 2014 $33-$35 in-the-money bull call spread should be able to weather the selling.

I can also use this position to hedge my short in the S&P 500 (SPY), with which I am feeling a small amount of heat.

Things are not so good that I am going to run out and buy a GM tomorrow. I am happy with my Tesla Model S-1, thank you very much.
Keep in mind that the options market is highly illiquid now, so don?t hold me to these prices. They are ballpark estimates, at best. I?m just trying to point you in the right direction. If you want to play with the strikes and the maturities, that?s fine with me.

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 expiration months farther out.

If the price of this spread has moved more than 5% by the time you receive this Trade Alert, don?t chase it. Wait for the next one. There are plenty of fish in the sea.

Here are the specific trades you need to execute this position:

Buy 56 August, 2014 (GM) $33 calls at?????$4.90

Sell short 56 August, 2014 (CAT) $35 calls at..??.$3.11
Net Cost:??????????????????.....$1.79

Potential Profit: $2.00 - $1.79 = $0.21

(56 X 100 X $0.21) = $1,170 or 1.17% profit for the notional $100,000 portfolio.

GM 7-2-14

CorvetteTime to Take Another Ride with GM

https://www.madhedgefundtrader.com/wp-content/uploads/2014/07/Corvette.jpg 262 345 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-07-03 10:28:362014-07-03 10:28:36Follow Up to Trade Alert - (GM) July 3, 2014
Mad Hedge Fund Trader

Trade Alert - (FXE) July 3, 2014

Trade Alert

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. Read more

0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-07-03 09:55:512014-07-03 09:55:51Trade Alert - (FXE) July 3, 2014
Mad Hedge Fund Trader

Trade Alert - (GM) July 3, 2014

Trade Alert

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. Read more

https://www.madhedgefundtrader.com/wp-content/uploads/2011/10/slider-05-trader-alert.jpg 316 600 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-07-03 09:51:162014-07-03 09:51:16Trade Alert - (GM) July 3, 2014
Mad Hedge Fund Trader

Trade Alert - (CAT) July 3, 2014

Trade Alert

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. Read more

0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-07-03 09:47:302014-07-03 09:47:30Trade Alert - (CAT) July 3, 2014
Mad Hedge Fund Trader

July 3, 2014

Diary, Newsletter, Summary

Global Market Comments
July 3, 2014
Fiat Lux

Featured Trade:
(MAD HEDGE FUND TRADER SETS NEW ALL TIME HIGH WITH 19.74% GAIN IN 2014),
(GOOGL), (TLT), (CAT), (IBM), (SPY), (VIX), (MSFT),
(POPULATION BOMB ECHOES),
(POT), (MOS), (AGU), (WEAT), (CORN), (SOYB), (RJA)
(THE COOLEST TOMBSTONE CONTEST)

Google Inc. (GOOGL)
iShares 20+ Year Treasury Bond (TLT)
Caterpillar Inc. (CAT)
International Business Machines Corporation (IBM)
SPDR S&P 500 (SPY)
VOLATILITY S&P 500 (^VIX)
Microsoft Corporation (MSFT)
Potash Corp. of Saskatchewan, Inc. (POT)
The Mosaic Company (MOS)
Agrium Inc. (AGU)
Teucrium Wheat (WEAT)
Teucrium Corn (CORN)
Teucrium Soybean (SOYB)
ELEMENTS Rogers Intl Commodity Agri ETN (RJA)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-07-03 01:06:092014-07-03 01:06:09July 3, 2014
Mad Hedge Fund Trader

Mad Hedge Fund Trader Sets New All Time High with 19.74% Gain in 2014

Diary, Newsletter

I am writing this to you from the ancient city of Bodrum on the southwest coast of Turkey. Coming here, I had to set my watch ahead ten hours, then back 3,000 years.

As I sit here on my balcony, a flotilla of yachts, both large and small, motor by with the Greek island of Kos hovering in the background in the haze. Smoke from the gurgling water pipes below waft in my direction.

The carnage in Syria goes on 400 miles to my east and worse in Iraq another 300 miles in the distance. The security forces are on a nervous alert and machine guns held by jumpy, sweating teenagers are everywhere. My five star hotel is eerily vacant, even though it is peak season, but the service is great.

Despite these ominous signs, I am happy to report that the industry beating performance of the Mad Hedge Fund Trader?s Trade Alert Service has punched through to a new all time high.

The total return for my followers so far in 2014 has reached 19.74%, compared to a far more feeble 1.4% for the Dow Average during the same period. June came in at a robust 4.32%.

I managed to pull this off during some of the most difficult trading conditions in market history. Turnover across all asset classes is hitting decade lows (see chart below), and volatility has crashed through the floor. Most of the rest of the hedge fund industry is getting destroyed.

The three and a half year return is now at an amazing 142.24%, compared to a far more modest increase for the Dow Average during the same period of only 36%.

That brings my averaged annualized return up to 39.7%. Not bad in this zero interest rate world. It appears better to reach for capital gains than the paltry yields out there.

This has been the profit since my groundbreaking trade mentoring service was first launched in 2010. Thousands of followers now earn a full time living solely from my Trade Alerts, a development of which I am immensely proud of.

Like most of the industry, I expected May and June to be poor months for risk assets. The market has had a tremendous run over the last two years, and the spring historically heralds a period of seasonal weakness.

Wrong!

One of the toughest things to do in this business is to admit you blew it, and then execute an immediate risk reversal in your portfolio.

In the end, the failure of the market to fall meant that it could only go up. We got additional help from month end window dressing, calming events in the Ukraine, and a 7:1 share split at Apple.

Another particularly vexing challenge is that the principal market driver has shifted from economics to geopolitics. The global economic recovery continues, but at a pace so modest that it hardly moves the needle on the volatility front.

The world is waiting to see whether the US can deliver a second half GDP growth rate of 4% per annum?.. or not.

In the meantime, a megalomaniac in Russia and terrorists in the Middle East are determining the short-term direction of asset prices. No hedge fund trader has any edge here, so calls on the coming price action are little more than educated guesses and wishing.

Good luck outperforming in that environment!

I played June predominantly from the long side, accumulating a basket of positions in old technology and traditional industrial names like IBM (IBM), Google (GOOGL), Caterpillar (CAT), and Microsoft (MSFT). I then opportunistically laid out hedging shorts in the S&P 500 (SPY) and the Treasury bond market (TLT).

As the market has tortuously ground up, I have whittled back my portfolio. I figured out that the way to make money trading in this market was not to trade, to ignore the day-to-day counter trend moves.
As a result, almost every day in June was profitable for my followers.

Quite a few were able to move fast enough to cash in on the move. To read the plaudits yourself, please go to my Testimonials Page . They are all real, and new ones come in almost every day.

My esteemed colleague, Mad Day Trader Jim Parker, was no slouch either, dodging in an out of the raindrops to make money on an intraday basis.

What would you expect with a combined 85 years of market experience between the two of us? Followers are laughing all the way to the bank.

Don?t forget that Jim clocked an amazing 2013 with a staggering 374% trading profit. That was just for an eight-month year!

The Opening Bell with Jim Parker, a quickie but insightful webinar giving followers an instant snapshot of the market opening every day, has been an overwhelming success. Many customers have already reported dramatic improvements in their trading results.

Watch this space, because the crack team at Mad Hedge Fund Trader has more new products and services cooking in the oven. You?ll hear about them as soon as they are out of beta testing.

Our business is booming, so I am plowing profits back in to enhance our added value for you. Next out will be the Mad Hedge Fund Trader Channel on YouTube that will enable me to post videos from my frequent travels around the world.

The coming year promises to deliver a harvest of new trading opportunities. The big driver will be a global synchronized recovery that promises to drive markets into the stratosphere by the end of 2014.

Global Trading Dispatch, my highly innovative and successful trade-mentoring program, earned a net return for readers of 40.17% in 2011, 14.87% in 2012, and 67.45% in 2013.

Our flagship product,?Mad Hedge Fund Trader PRO, costs $4,500 a year. It includes my Global Trading Dispatch?(my trade alert service and daily newsletter). You get a real-time trading portfolio, an enormous research database, and live biweekly strategy webinars. You also get Jim Parker?s?Mad Day Trader?service and?The Opening Bell with Jim Parker.

To subscribe, please go to my website at?www.madhedgefundtrader.com, find the?Global Trading Dispatch??or ?Mad Hedge Fund Trader PRO??box on the right, and click on the blue??SUBSCRIBE NOW??button.

Trading Results 6-2014

Market Volumes

John ThomasHello from Istanbul

https://www.madhedgefundtrader.com/wp-content/uploads/2014/07/John-Thomas.jpg 363 456 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-07-03 01:05:492014-07-03 01:05:49Mad Hedge Fund Trader Sets New All Time High with 19.74% Gain in 2014
Mad Hedge Fund Trader

July 3, 2014 - Quote of the Day

Quote of the Day

?Something is going to be passed by the congress. The only question is, will it happen before, or after a bond market crisis. There?s no alternative,? said Dr. Alan Greenspan, former chairman of the Federal Reserve.

Woman-Evening Gown-Car Crash

https://www.madhedgefundtrader.com/wp-content/uploads/2013/09/Woman-Evening-Gown-Car-Crash.jpg 277 369 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-07-03 01:02:082014-07-03 01:02:08July 3, 2014 - Quote of the Day
Mad Hedge Fund Trader

July 2, 2014 - MDT Pro Tips A.M.

MDT Alert

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points. Read more

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-07-02 10:09:252014-07-02 10:09:25July 2, 2014 - MDT Pro Tips A.M.
Mad Hedge Fund Trader

July 2, 2014

Diary, Newsletter, Summary

Global Market Comments
July 2, 2014
Fiat Lux

Featured Trade:
(JULY 24 ZERMATT, SWITZERLAND GLOBAL STRATEGY SEMINAR),

(WHO WAS BEN BERNANKE?),
(PLEASE USE MY FREE DATA BASE SEARCH),
(DRINKS WITH THE PRESIDENT)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-07-02 01:07:022014-07-02 01:07:02July 2, 2014
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Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

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