• 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 - (AZN) February 17, 2021 - SELL-TAKE PROFITS

Biotech Alerts

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

 

BioTech Trade Alert - AstraZeneca PLC (AZN) – TAKE PROFITS

SELL – AstraZeneca PLC (AZN) February 2021 $46.50-$49.50 in-the-money vertical BULL CALL spread at $2.98

Closing Trade – NOT FOR NEW SUBSCRIBERS

2-17-2021

expiration date: February 19, 2021

Portfolio weighting: 10%

Number of Contracts = 39 contracts

This was a short-term trade that AstraZeneca PLC (AZN) would stay above $49.50 in 23 days and the risk of holding it to expiration is no longer favorable, so we are taking profits.

This company is mostly known in 2021 as one of the few biotech companies selling a vaccine.

AstraZeneca plc is a British-Swedish multinational pharmaceutical and biopharmaceutical company with its headquarters in Cambridge, England. AstraZeneca has a portfolio of products for major disease areas including cancer, cardiovascular, gastrointestinal, infection, respiratory, and inflammation.

They can’t make enough of the vaccine in the short-term and although we are headed for a vaccine glut, this was just a short-time trade that worked out well for us.

The European Commission's second round of discussions with the pharmaceutical firm on delays in vaccine deliveries ended in "dissatisfaction with the lack of clarity and insufficient explanations", the Commission said.

EU Member States are united: vaccine developers have societal and contractual responsibilities they need to uphold," said EU Health Commissioner Stella Kyriakides. AZN is having fulfillment problems but their product is clearly desirable in large amounts around the world.

AZN has such a high volume of backorders that they are starting to stiff their buyers, this means they will be in the vaccine business for quite a foreseeable time and I used a sudden dip in shares to execute a deep in the money call spread on AZN and we are taking profits.

Moderna, Inc. (MRNA) is also a company to look at short-term.

My 3-year target on AZN is $70.

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

Sell to Close 39 February 2021 (AZN) $46.50 calls at.….………$5.00

Buy to Close 39 February 2021 (AZN) $49.50 calls at….……….$2.02

Net Proceeds:………………....................……..…….………..…….....$2.98

Profit: $2.98 - $2.50 = $.48

(39 X 100 X $.48) = $1,872 or 19.20%

 

 

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 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 Trader2021-02-17 11:37:082021-02-17 11:49:05Trade Alert - (AZN) February 17, 2021 - SELL-TAKE PROFITS

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: February 17, 2021 Link to: February 17, 2021 February 17, 2021 Link to: Trade Alert - (QCOM) February 17, 2021 - SELL-TAKE PROFITS Link to: Trade Alert - (QCOM) February 17, 2021 - SELL-TAKE PROFITS Trade Alert - (QCOM) February 17, 2021 - SELL-TAKE PROFITS
Scroll to top