• 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 - (SPY) August 29, 2022 - 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 - (SPY) – TAKE PROFITS


SELL the S&P 500 (SPY) September 2022 $445-$455 in-the-money vertical bear put spread at $9.95 or best

Closing Trade

8-29-2022

expiration date: September 16, 2022

Portfolio weighting: 10%

Number of Contracts = 11 contracts

I think it is safe to call this trade a win. Since we added this position 12 trading days ago, the S&P 500 has shed $32 points, or 7.4%. The Volatility Index (VIX) has rocketed from $19 to $28.

With 95% of the maximum potential profit in hand, the risk/reward of carrying this position for 14 more trading days is no longer favorable. Also, I prefer to go 100% into cash for September, which promises to deliver the next major low for this market.

Therefore, I am selling the S&P 500 (SPY) September 2022 $445-$455 in-the-money vertical bear put spread at $9.95 or best

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 lower your offer by 5 cents with a second order.

As a result, you get to take home $1,045 or 10.55% in 12 trading days. Well done and on to the next trade.

This was a bet that the S&P 500 (SPY) would not trade above $445.00 by the September 16 options expiration day in 25 trading days.

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

Sell 11 September 2022 (SPY) $455 puts at……........……….…$52.00

Buy to cover short 11 September 2022 (SPY) $445 puts at….$42.05

Net Proceeds:………………………….……….…................…….….....$9.95

Profit: $9.95 - $9.00 = $0.95

(11 X 100 X $0.95) = $1,045 or 10.55% in 12 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 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2022-08-29 12:44:062022-08-29 12:44:06Trade Alert - (SPY) August 29, 2022 - 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 29, 2022 Link to: August 29, 2022 August 29, 2022 Link to: Report from the August 4 Tesla Shareholders Meeting Link to: Report from the August 4 Tesla Shareholders Meeting Report from the August 4 Tesla Shareholders Meeting
Scroll to top