• 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 - (KLAC) August 13, 2019 - SELL-TAKE PROFITS

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 Trade Alert - (KLAC) – SELL – TAKE PROFITS

SELL the KLA Corporation (KLAC) September 2019 $150-$155 in-the-money vertical BEAR PUT spread at $4.65 or best

Closing Trade

8-13-2019

expiration date: September 20, 2019

Portfolio weighting: 10%

Number of Contracts = 22 contracts

KLA Corporation (KLAC) designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nanoelectronics industries worldwide.

It just so happens that they procure 44% of total revenue from Greater China and that isn’t something to be all that happy these days.

The Office of the U.S. Trade Representative announced Tuesday that products including “cellphones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing” would not be hit with a 10% tariff until December 15.

Originally, President Donald Trump announced at the start of August that he would be imposing a 10% tariff on $300 billion worth of Chinese imports starting September 1, which would have included many of these items.

This means to bail out of chips on the short side – good thing we bought it at a great price before on the softness.

Semis should do well short-term after this announcement.

I am selling this for 50 cents profit.

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

Sell 22 September 2019 (KLAC) $155 puts at ……..............…….………$20.65

Buy to Cover short 22 September 2019 (KLAC) $150 puts at………….$16.30

Net Proceeds:…………………….………..……............................................$4.65

Potential Profit: $4.65 - $4.15 = $0.50

(22 X 100 X $0.50) = $1,100 or 1.10%

 

 

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.

 

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 Trader2019-08-13 10:46:562019-08-13 10:46:56Trade Alert - (KLAC) August 13, 2019 - 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: August 13, 2019 - MDT Pro Tips A.M. Link to: August 13, 2019 - MDT Pro Tips A.M. August 13, 2019 - MDT Pro Tips A.M. Link to: Trade Alert - (MU) August 13, 2019 - SELL-STOP LOSS Link to: Trade Alert - (MU) August 13, 2019 - SELL-STOP LOSS Trade Alert - (MU) August 13, 2019 - SELL-STOP LOSS
Scroll to top