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.
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.
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 -(AAPL)
Buy the Apple (AAPL) July, 2014 $540-$570 in-the-money bull call spread at $26.20 or best
Opening Trade
5-20-2014
expiration date: July 18, 2014
Portfolio weighting: 10%
Number of Contracts = 4 contracts
The fact that the stock has refused to back off after the earnings blowout upside gap is extremely positive. After two years of apathy, many institutional investors now find themselves underweight the stock.
This is all happening into the iPhone 6 release in September?.or sooner. The company could shock us all and announce as early as June. For many years now, the best trading strategy has been to own the stock into the big product releases, and sell it on the announcement. The Impending 7:1 share split should also provide another boost for the shares.
Apple is easily the most compelling value play in the market today. Its cash mountain is now an unbelievable $170 billion, and it just borrowed $17 billion against the offshore portion, almost interest free. However, this is definitely not a case where you buy the stock instead of the July, 2014 $540-$570 in-the-money bull call spread.
If the shares move sideways for another month, you make money. With the stock you don?t. Buying stock outright is something you should have done last summer, when (AAPL) was at a lowly $385 a share. It is now 57% higher.
There may not be enough money in the world to push the shares of the world?s largest company up substantially higher from here, which at yesterday?s close had an eye popping market capitalization of $521 billion.
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. Keep in mind that these are ballpark prices only. 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 4 July, 2014 (AAPL) $540 calls at?????$66.80
Sell short 4 July, 2014 (AAPL) $570 calls at..??.$40.60
Net Cost:??????????????????.....$26.20
Potential Profit: $30.00 - $26.20 = $3.20
(4 X 100 X $3.20) = $1,580 or 1.58% profit for the notional $100,000 portfolio.
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
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.
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.
Global Market Comments
May 20, 2014
Fiat Lux
SPECIAL LAS VEGAS SALT ISSUE
Featured Trade:
(LAST CHANCE TO ATTEND THE CHICAGO FRIDAY, MAY 23 GLOBAL STRATEGY LUNCHEON),
(REPORT ON THE 6th ANNUAL SKYBRIDGE ALTERNATIVES (SALT) CONFERENCE)
?Most of the time, stocks are in a zone of reasonableness. I think stocks are reasonable now,? said Oracle of Omaha, Berkshire Hathaway?s Warren Buffett.
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.
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 -(TLT)
Buy the iShares Barclay 20+ Year Treasury Bond Fund (TLT) July, 2014 $116-$119 in-the-money bear put spread at $2.25 or best
Opening Trade
5-19-2014
expiration date: July 18, 2014
Portfolio weighting: 10%
Number of Contracts = 45 contracts
Just a few quick words here.
I think we chewed through a good chunk of our short squeeze with the plunge in yields from 2.60% to 2.48%. Even if the bond market continues to grind up, it is going to be a low volume slog. These strikes give you a break even in the position of 2.38% in yield terms, the old all time low.
We only need one bad day in the bond market to make the bulk of your profit in this trade. If you can?t do options, then buy the (TBT) for a couple of points in the short term, and a double for the long term.
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. Keep in mind that these are ballpark prices only. Spread pricing can be very volatile on expiration months farther out.
Here are the specific trades you need to execute this position:
Buy 45 July, 2014 (TLT) $119 puts at?????$6.75
Sell short 45 July, 2014 (TLT) $116 puts at..??.$4.50
Net Cost:??????????????????.....$2.25
Potential Profit: $3.00 - $2.25 = $0.75
(45 X 100 X $0.75) = $3,375 or 3.38% profit for the notional $100,000 portfolio.
