• 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 - (QCOM) February 17, 2021 - 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 Alert - QUALCOMM Incorporated (QCOM) – SELL – TAKE PROFITS

SELL - TAKE PROFITS QUALCOMM Incorporated (QCOM) February 2021 $135-$140 in-the-money vertical BULL call spread at $4.78

Closing Trade – NOT FOR NEW SUBSCRIBERS

2-17-2021

expiration date: February 19, 2021

Portfolio weighting: 10%

Number of Contracts = 23 contracts

This was a short-term bet that semiconductor company QUALCOMM Incorporated (QCOM) would stay above $140 until the February 19th expiration.

We have two more days left until February expiration but QCOM continues to crawl sideways and today’s down day got us closer to $143 which is a little too close for comfort.

I’m using this little intraday bump to take profits as the Nasdaq consolidating is hitting us with just a few days left to go before our positions expire.

We are still accruing 75% of the possible maximum profit which is still quite healthy considering the lack of explosive price action in QCOM.

Well done and on to the next trade.

Our entry point came to us when QCOM sold off over 9% after great earnings.

This is what we call “buy the rumor and sell the news.”

Qualcomm's first-quarter sales rose 62% year over year to $8.24 billion. Adjusted earnings more than doubled from $0.99 to $2.17 per diluted share. The revenue result was right in line with Wall Street's consensus estimates, but your average analyst would have settled for earnings near $2.08 per share on revenue.

Looking ahead, Qualcomm expects second-quarter sales to rise approximately 46% year over year to $7.6 billion. Adjusted earnings should land near $1.65 per share, an 88% jump from the year-ago period's result. Here, analysts had been expecting revenue of roughly $7.1 billion and earnings in the vicinity of $1.57 per share.

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

Sell to Close 23 February 2021 (QCOM) $135 calls at………….………$9.83

Buy to Close 23 February 2021 (QCOM) $140 calls at…..........……….$5.05

Net Proceeds:……………………..……..............................………..…….....$4.78

Profit: $4.78 - $4.13 = $.65

(23 X 100 X $.65) = $1,495 or 15.74%

 

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 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 Trader2021-02-17 14:38:042021-02-17 14:38:04Trade Alert - (QCOM) February 17, 2021 - 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: Trade Alert - (AZN) February 17, 2021 - SELL-TAKE PROFITS Link to: Trade Alert - (AZN) February 17, 2021 - SELL-TAKE PROFITS Trade Alert - (AZN) February 17, 2021 - SELL-TAKE PROFITS Link to: February 17, 2021 - Quote of the Day Link to: February 17, 2021 - Quote of the Day February 17, 2021 - Quote of the Day
Scroll to top