• 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 - (CCL) March 11, 2020 - SELL-TAKE PROFITS

Trade 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

 

Trade Alert - (CCL) – TAKE PROFITS

SELL the Carnival Cruise Lines (CCL) March 2020 $36-$38.00 in-the-money vertical Bear Put spread at $1.98 or best

Closing Trade – NOT FOR NEW SUBSCRIBERS

3-11-2020

expiration date: March 20, 2020

Portfolio weighting: 10%

Number of Contracts = 59 contracts

I am going to keep with my buy low, sell high philosophy.

So, I am going to use today’s 900-point dip in the Dow Average to cover my short. It's not often that I get to sell short a stock like Carnival Cruise Lines and watch it collapse 40% in 5 trading days, but that is what has happened.

My bet that the Corona effects on the cruise industry were vastly underestimated by the market and that the industry was about to implode proved correct.

I checked cruise prices for this summer, and they are offering fantastic deals down 50% from the list prices that prevailed only a month ago. Almost all Asian cruises have been cancelled forcing massive refunds which have yet to hit the income statement.

I am therefore selling the Carnival Cruise Lines (CCL) March 2020 $$36-$38.00 in-the-money vertical Bear Put spread at $1.98 or best. Only use a limit order. DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

This was a bet that Carnival Cruise Lines (CCL) would not trade above $36 by the March 20 option expiration day in 12 trading days.

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

Sell 59 March 2020 (CCL) $38.00 puts at…….........…….………$17.00

Buy to cover short 59 March 2020 (CCL) $36.00 puts at….….$15.02

Net Proceeds:……….……..…….………..…...................……….….....$1.98

Profit: $1.98 - $1.60 = $0.38

(59 X 100 X $0.38) = $2,242 or 23.75% in 5 trading days.

 

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://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 Trader2020-03-11 10:56:042020-03-11 10:56:04Trade Alert - (CCL) March 11, 2020 - 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: March 11, 2020 Link to: March 11, 2020 March 11, 2020 Link to: Trade Alert - (AAPL) March 11, 2020 - SELL-TAKE PROFITS Link to: Trade Alert - (AAPL) March 11, 2020 - SELL-TAKE PROFITS Trade Alert - (AAPL) March 11, 2020 - SELL-TAKE PROFITS
Scroll to top