• 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 - (DE) August 7, 2024 - GO SHORT

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 - (DE) – GO SHORT

BUY the Deere & Co. (DE) August 2024 $375-$385 vertical Bear Put debit spread at $8.70 or best

 

Opening Trade

8-7-2024

expiration date: August 16, 2024

Portfolio weighting: 10%

Number of Contracts = 12 contracts

I only have one position left that is threatening to break a near-strike price and that is the Deere & Co. (DE) August 2024 $330-$340 vertical BULL CALL debit spread. So I am going to hedge it with a new short position in the same name.

This effectively lowers the breakeven point for the long-side trade by $3.40, or $336.60. That is well below a triple bottom for (DE) for the year.

Therefore, I am buying the Deere & Co. (DE) August 2024 $375-$385 vertical Bear Put debit spread at $8.70 or best.

Don’t pay for than $9.40 or you will be chasing.

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Simply enter your limit order, wait five minutes, and if you don’t get done cancel your order and increase your bid by 10 cents with a second order.

The bull case for Deere & Co. is simple. Falling interest rates will bring huge cost reductions for heavy borrowers like (DE). The company provides tractors and other heavy equipment used for agriculture, mining, and construction, all of which will see imminent turnarounds thanks to lower interest rates.

Deere $ Co shares are trading at positively subterranean price-earnings multiple of 11X, compared to 21X for the S&P 500 and 40X for (NVDA). It also pays a modest 1.63% dividend yield.

For details about Deere & Co, (DE), please click here to visit their website.

This is a bet that the (DE) will not fall below $340 by the August 16 option expiration in 9 trading days.

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

Buy 12 August 2024 (DE) $385 puts at………….………$42.00

Sell short 12 August 2024 (DE) $375 puts at……….…$33.30

Net Cost:………………………….………..…………........….....$8.70

Potential Profit: $10.00 - $8.70 = $1.30

(12 X 100 X $1.30) = $1,560 or 14.94% in 7 trading days.

 

 

 

If you are uncertain about 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 april@madhedgefundtrader.com https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png april@madhedgefundtrader.com2024-08-07 10:27:572024-08-07 10:27:57Trade Alert - (DE) August 7, 2024 - GO SHORT

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 - (NVDA) August 7, 2024 - TAKE PROFITS - SELL Link to: Trade Alert - (NVDA) August 7, 2024 - TAKE PROFITS - SELL Trade Alert - (NVDA) August 7, 2024 - TAKE PROFITS - SELL Link to: Trade Alert - (META) August 7, 2024 - TAKE PROFITS - SELL Link to: Trade Alert - (META) August 7, 2024 - TAKE PROFITS - SELL Trade Alert - (META) August 7, 2024 - TAKE PROFITS - SELL
Scroll to top