• 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) November 1, 2016

Trade Alert

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what you should buy, when to buy it, and at what price.

Alert

Trade Alert - (SPY)- TAKE PROFITS

SELL the S&P 500 SPDR (SPY) November, 2016 $220-$223 in-the-money vertical bear put spread at $2.88 or best

Closing Trade

11-1-2016

Expiration Date: November 18, 2016

Portfolio Weighting: 10%

Number of Contracts = 38 contracts

We are having a monster day in the market today, with our short positions kicking in big time.

So, I am going to use the selloff today, inspired by a modest improvement in the polls for Donald Trump, to reduce my positions.

If you bought the ETF outright, hold for the long term.

My goal is to be 100% in cash on election day so I can have plenty of dry powder with which to take advantage of any extreme moves post election.

With this Trade Alert, I will be moving from an 80% invested position a week ago to only 10% today.

The market doesn?t ask you twice to take a profit, so I am selling my S&P 500 SPDR (SPY) November, 2016 $220-$223 in-the-money vertical bear put spread.

At this price we are reeling in a very generous 14.28% profit in a mere 9 trading days.

By taking profits here, we are capturing 75.00% of the maximum potential profit with 13 trading days left until the November 18th expiration.

We also get to duck the risk of holding the position through the election.

I have no doubt that Hillary Clinton will have the Electoral College locked up on November 8th.

What is unknown is the number of market-gyrating bombshells headed our way in the next six trading days. With the FBI now involved in election proceedings, anything can happen.

Suddenly, cash looks very attractive.

This was a bet that the S&P 500 (SPY) wouldn?t trade above $220 at the November options expiration in 22 trading days. That would be a new all time high.

From the perspective of the $211 handle today, that looks like a stroke of genius.

I believe we are going to new highs, but just not quite yet.

To see how to enter this trade in your online platform, please look at the order ticket below, which I pulled off of optionshouse.

If you are uncertain about how to execute this options spread, please watch my training video How to Execute a Vertical Bear Put Debit Spread

Please keep in mind these are ballpark prices at best. After the text alerts go out, prices can be all over the map. There is no telling how much the market will have moved by the time you get this email.

Paid subscribers, be sure you've signed up for our FREE text alert service. When seconds count, this feature offers a trading advantage.? In today's volatile markets, individual investors need every advantage they can get.

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 with only 13 days to expiration.

Here Are the Specific Trades You Need to Execute This Position:

SELL 38 November, 2016 (SPY) $223 puts at??.?.??$12.20

BUY to cover short 38 November, 2016 (SPY) $220 puts at..$9.32
Net Cost:????????????????????......$2.88

Profit: $2.88 - $2.52 = $0.36

(38 X 100 X $0.36) = $1,368 or 14.28% profit in 9 trading days.

spy

spy-11-1-16

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 Trader2016-11-01 13:33:592016-11-01 13:33:59Trade Alert - (SPY) November 1, 2016

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: MOT Follow-Up to Text Alert - (SPX) (VXX) (EWZ) November 1, 2016 Link to: MOT Follow-Up to Text Alert - (SPX) (VXX) (EWZ) November 1, 2016 MOT Follow-Up to Text Alert - (SPX) (VXX) (EWZ) November 1, 2016 Link to: The Great Artificial Intelligence Stock Play You?ve Never Heard Of Link to: The Great Artificial Intelligence Stock Play You?ve Never Heard Of The Great Artificial Intelligence Stock Play You?ve Never Heard Of
Scroll to top