• 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

Tech Trade Alert - (AMZN) October 4, 2018 STOP LOSS

Tech Letter

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.


Alert

Tech Trade Alert - (AMZN) – STOP LOSS

SELL the Amazon (AMZN) October, 2018 $1,800-$1,900 in-the-money vertical BULL CALL spread at $79.00 or best     

 

Closing Trade

10-4-2018

expiration date: October 19, 2018

Portfolio weighting: 10%

Number of Contracts = 1 contract

The two-day, 12 basis point spike in the US Treasury bond market has certainly put the cat among the pigeons in the stock market and risk taking in general. Traders are bailing on their winners at an astounding rate.

I am therefore going to de-risk my portfolio and sell my position in the Amazon (AMZN) October, 2018 $1,800-$1,900 in-the-money vertical BULL CALL spread at $79.00 or best.

This was a short term momentum driven expiration play, and once these turn against you, you should run for cover.

The loss here is offset by the profit we made selling short US Treasury bonds (TLT). That leaves us with Microsoft (MSFT), which is still showing a nice profit and will leave us still up on the month.

If you own Amazon stock, sell it for the short term but hold it for the long term.

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

Sell 1 October 2018 (AMZN) $1,800 calls at…….………$136.00
Buy to cover short 1 October 2018 (AMZN) $1,900 calls at….$57.00
Net Proceeds:………………………….…………..…….….....$79.00

LOSS: $90.00 = $79.00

(1 X 100 X $79.00) = -$1,100 or -11.11%.

 

To see how to enter this trade in your online platform, please look at the order ticket above, which I pulled off of Interactive Brokers.

If you are uncertain on how to execute an options spread, please watch my training video on How to Execute Vertical Call and Put Debit Spreads by clicking here.

You must be logged into your account to view the video.

Please keep in mind that these are ballpark prices only. There is no telling how much the market can move by the time you get this.

Be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage. In today's market, investors need every advantage they can get.

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 close to expiration.

If you don't get done, don't worry. There are another 250 Trade Alerts coming at you over the coming 12 months.

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 Arthur Henry https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Arthur Henry2018-10-04 12:07:322018-10-04 12:07:32Tech Trade Alert - (AMZN) October 4, 2018 STOP LOSS

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: Trade Alert - (AMZN) October 4, 2018 STOP LOSS Link to: Trade Alert - (AMZN) October 4, 2018 STOP LOSS Trade Alert - (AMZN) October 4, 2018 STOP LOSS Link to: October 5, 2018 - Quote of the Day Link to: October 5, 2018 - Quote of the Day October 5, 2018 - Quote of the Day
Scroll to top