• 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 - (BABA) November 19, 2014

Trade Alert

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.

Trade Alert - (BABA) ? STOP LOSS

Sell the Alibaba (BABA) December, 2014 $100-$105 in-the-money vertical call spread at $3.30 or best

Closing Trade

11-19-2014

expiration date: December 19, 2014

Portfolio weighting: 10%

Number of Contracts = 25 contracts

 

You can sell this vertical call spread anywhere within $3.30-$3.60 range and limit your losses.

If you purchased the stock sell for the short term ? hold for the long term.

Keep in mind that the options market is highly illiquid now, so don?t hold me to these prices. They are ballpark estimates, at best.

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.

If the price of this spread has moved more than 10% 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:

Sell 25 December, 2014 (BABA) $100 calls at???.............??$10.30

Buy to cover short 25 December, 2014 (BABA) $105 calls at...$7.00
Net Cost:??????????????................................????.....$3.30

Potential Loss: $4.25 - $3.30 = -$0.95

(25 X 100 X $-0.95) = -$2,375 or -2.38% loss for the notional $100,000 portfolio.

 

BABA 11-19-14

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-11-19 10:07:242014-11-19 10:07:24Trade Alert - (BABA) November 19, 2014

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: November 19, 2014 Link to: November 19, 2014 November 19, 2014 Link to: November 19, 2014 - MDT Pro Tips A.M. Link to: November 19, 2014 - MDT Pro Tips A.M. November 19, 2014 - MDT Pro Tips A.M.
Scroll to top