• 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) June 21, 2022 - BUY

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) - BUY

BUY the S&P 500 (SPY) July 2022 $410-$420 in-the-money vertical bear put spread at $9.00 or best

Opening Trade

6-21-2022

expiration date: July 15, 2022

Portfolio weighting: 10%

Number of Contracts = 12 contracts

I am going to add a small hedge here to offset the 40% long position we already have. I believe we have bottomed in the (SPY) for a few days or weeks but aren’t taking off for the races any time soon.

With the (VIX) still at $30, we can still take in a decent amount of premium income by going very deep in-the-money. And with the Fed in an aggressive tightening mode, there is always room for one more downside hedge. Even though we have risen 790 points from the Thursday low, bearishness is still rampant.

I am therefore buying the S&P 500 (SPY) July 2022 $410-$420 in-the-money vertical bear put spread at $9.00 or best.

Don’t pay more than $9.30 or you’ll be chasing.

This is a bet that the S&P 500 (SPY) will not trade above $410.00 by the July 15 option expiration day in 17 trading days.

If you don’t do options, stand aside. This is a very short-term options play only.

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

Buy 12 July 2022 (SPY) $420 puts at………….………$45.00

Sell short 12 July 2022 (SPY) $410 puts at………….$36.00

Net Cost:………………………….………..…....……….….....$9.00

Potential Profit: $10.00 - $9.00 = $1.00

(12 X 100 X $1.00) = $1,200 or 11.11% in 17 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 Trader2022-06-21 11:33:582022-06-21 11:33:58Trade Alert - (SPY) June 21, 2022 - 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: June 21, 2022 Link to: June 21, 2022 June 21, 2022 Link to: Quote of the Day - June 21, 2022 Link to: Quote of the Day - June 21, 2022 Quote of the Day - June 21, 2022
Scroll to top