• 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 - (STX) September 3, 2019 - SELL-STOP LOSS

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 - (STX) – SELL – STOP LOSS

Sell the Seagate Technology plc (STX) September 2019 $50-$55 in-the-money vertical BEAR PUT spread at $3.96 or best

Closing Trade

9-3-2019

expiration date: September 20, 2019

Portfolio weighting: 10%

Number of Contracts = 22 contracts

Out of the 8 current positions in the portfolio, this was is the only one even close to life support.

This short position went against us on Friday, mushrooming 5% and the stock has gone up in a straight line from $44, clearing out our $50 strike price and churning all the way to $51 by Friday’s end.

The price action has been nothing short of horrific.

After the position ended Friday down 24%, I’ll use this drop of over 2% in the stock to exit the position with a small loss.

STX only has a 52.86% chance of ending below $50 by the expiration on September 20th and executing appropriate risk control now is the only way to keep the portfolio healthy.

When someone gives you a gift, take it with both hands.

I still hate the company and I urge readers to avoid holding this stock long term.

There are tons of better fishes in the sea.

Seagate Technology is a legacy tech company who each time gets a bump in shares because they are doing less worse than previous thought.

Seagate Technology PLC shares fell on last earnings report because the maker of hard disk drives and storage products said revenue fell in its fiscal fourth quarter and offered soft profit guidance.

Labels like “deep value” are not what I want to hear at this stage in the economic cycle.

The company hasn’t grown revenue in years and the global slowdown won’t help them overcome softness and the weak guidance confirmed that.

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

Sell 22 September 2019 (STX) $55 put at………….……......…$6.05

Buy to cover short 22 September 2019 (STX) $50 put at….$2.09

Net Proceeds:……………………..…….………..……....................$3.96

Loss: $4.50 - $3.96 = $0.54

(22 X 100 X $0.54) = $1,188 or 11.88%

 

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 Trader2019-09-03 10:56:252019-09-03 10:56:25Trade Alert - (STX) September 3, 2019 - SELL-STOP LOSS

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: September 3, 2019 - MDT Alert (FL) Link to: September 3, 2019 - MDT Alert (FL) September 3, 2019 - MDT Alert (FL) Link to: Trade Alert - (OKTA) September 3, 2019 - SELL-TAKE PROFITS Link to: Trade Alert - (OKTA) September 3, 2019 - SELL-TAKE PROFITS Trade Alert - (OKTA) September 3, 2019 - SELL-TAKE PROFITS
Scroll to top