• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

September 30, 2016 - MDT Alert Update

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 Bill Davis, 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.
Weekly Expiration Update:

This is a follow up to this morning's daily update.

CIEN is trading well under the $24.50 strike, so they will expire worthless today.

If you used the full allocation, the cash return will be $720.

I will look to sell another round of calls against the October long calls next week.

The second position is the short $17 call on ETE.? ETE is trading around $16.86 as I write this.? This is only 14 cents under the strike.?

My suggestion is to leave the calls alone and let's see if the stock settles under $17 at the close.

If it does, the calls will expire worthless.? If it ends up closing above $17, the calls will be assigned and you will sell your shares at $17.

In both cases you keep the premium.

By the way, if the calls are assigned, the return on ETE will be around 40%, based on the gain and the premium collected. This does not include a few quarters of distributions which is on top of the 40%.

The final deal is P.? If you followed the alerts, you should be short the $14 call that expires today.

P is trading around $14.31 or about 30 cents above the strike.

My suggestion is to let the calls be assigned.

Based on the prior calls you sold and the gain on sale, the overall return will be about 15%. Not tremendous, but a gain none the less.

I would rather move on and look for other opportunities.

Enjoy your weekend.

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 DougD https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png DougD2016-09-30 14:50:552016-09-30 14:50:55September 30, 2016 - MDT Alert Update

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

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.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: September 30, 2016 MDT Pro Tips A.M. Link to: September 30, 2016 MDT Pro Tips A.M. September 30, 2016 MDT Pro Tips A.M. Link to: Why Technical Analysis Doesn?t Work Link to: Why Technical Analysis Doesn?t Work Why Technical Analysis Doesn?t Work
Scroll to top