• 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

Trade Alert - (ADBE) March 9, 2020 - SELL-STOP LOSS

Tech Alert

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 Alert - Adobe Inc. (ADBE) – SELL – STOP LOSS

SELL Adobe Inc. (ADBE) March 2020 $315-$320 in-the-money vertical BULL call spread at $3.23

Closing Trade

3-9-2020

expiration date: March 20, 2020

Portfolio weighting: 10%

Number of Contracts = 23 contracts

This isn’t about tech or Adobe and how bad or good it is at this point, in a top-down world, tech companies take a seat to a health scare, crashing interest rates, or an oil price war.

If these black swans happen at one time, the markets get overloaded with sell orders.

Last Friday, we exited 2 of our positions with minimal losses as short-covering took hold of the market.

Our last position is Adobe and its time to dump and cut our losses before the options go to 0.

Everything is down 5% at the open and this could get really ugly for the Nasdaq before it is done today as many of the foundational pillars of growth disintegrated before our very eyes and is seriously testing the end of the tech bull market.

Expect upcoming mass layoffs at tech companies, energy companies, retail/hospitality/travel companies and banks.

Adobe is the best cloud stock connected with generating digital content and especially premium content.

Not only is the software operated at a professional level, but the company is pumping out 20%+ year over year growth each quarter.

This was a short-term bet that software company Adobe will stay above $320 by March 20. But market conditions have deteriorated to the point that we need to reduce risk.

I was only focusing on the strongest names in the tech sector for these short-term trades in an attempt to hide out from the chaos going on as the U.S. economy is battling a potential epidemic and emergency interest rate cuts, but the negative news is overwhelmingly flooding sentiment and the fallout is real to tech companies.

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

Sell 23 March 2020 (ADBE) $315 call at………….............………$23.35

Buy to Cover Short 23 March 2020 (ADBE) $320 call at……….$20.12

Net Proceeds:……………………........................…….………..…….....$3.23

Loss: $4.15 - $3.23 = $0.92

(23 X 100 X -$0.92) = -$2,116 or -21.16%

 

STOCKCHARTS.COM IS EXPERIENCING TECHNICAL DIFFICULTIES THIS MORNING

 

To see how to enter this trade in your online platform, please look at the order ticket below, 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 a Vertical Bull Call Spread” by clicking here at
https://www.madhedgefundtrader.com/ltt-vbpds/

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.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.

To see how to enter this trade in your online platform, please look at the order ticket below, 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 a Vertical Bull Call Spread” by clicking here.
 
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.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://www.madhedgefundtrader.com/wp-content/uploads/2016/02/Alert-e1457452190575.jpg 135 150 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2020-03-09 10:48:012020-03-09 10:48:01Trade Alert - (ADBE) March 9, 2020 - SELL-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) March 9, 2020 - SELL-STOP LOSS Link to: Trade Alert - (AMZN) March 9, 2020 - SELL-STOP LOSS Trade Alert - (AMZN) March 9, 2020 - SELL-STOP LOSS Link to: Quote of the Day - March 10, 2020 Link to: Quote of the Day - March 10, 2020 Quote of the Day - March 10, 2020
Scroll to top