• 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 - (MU) August 8, 2019 - BUY

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 - Micron Technology, Inc. (MU) – BUY

BUY Micron Technology, Inc. (MU) September 2019 $47-$50 in-the-money vertical BEAR PUT spread at $2.50 up to $2.60

Opening Trade

8-8-2019

expiration date: September 20, 2019

Portfolio weighting: 10%

Number of Contracts = 40 contracts

Micron is levered to China Inc. procuring 51% of revenue from mainland China.

This is a bet that Micron won’t break out to August 2018 levels before they hit a rough patch and the trade war went into overdrive.

The recent sell-off has destroyed all technical support levels and to think that Micron will lead the way out of this mess without a partial or full trade deal is bonkers.

I am willing to make a short-term bet that Micron won’t break out.

Consumer devices such as smartphones are saturated and MU produces DRAM chip which are used for smartphones.

The tariffs directly hurt Micron and the company has been part of some IP disputes claiming that local Chinese companies have indulged in their knowhow.

Don’t pay more than $2.60.

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

Buy 40 September 2019 (MU) $50 put at………….………$8.15

Sell short 40 September 2019 (MU) $47 put at………….$5.65

Net Cost:……………………..…….……................…..…….....$2.50

Potential Profit: $3.00 - $2.50 = $.50

(40 X 100 X $.50) = $2,000 or 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 on “How to Execute a Vertical Bull Call Spread” 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 Trader2019-08-08 11:44:222019-08-08 11:44:22Trade Alert - (MU) August 8, 2019 - BUY

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 - (VEEV) August 8, 2019 - BUY Link to: Trade Alert - (VEEV) August 8, 2019 - BUY Trade Alert - (VEEV) August 8, 2019 - BUY Link to: August 8, 2019 - MDT Alert (XLNX) Link to: August 8, 2019 - MDT Alert (XLNX) August 8, 2019 - MDT Alert (XLNX)
Scroll to top