• 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 - (TLT) June 8, 2017

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 - (TLT) TAKE PROFITS

SELL the iShares Barclays 20+ Year Treasury Bond Fund (TLT) June, 2017 $128-$130 in-the-money vertical BEAR PUT spread at $1.95 or best

Closing Trade

6-8-2017

expiration date: June 16, 2017

Portfolio weighting: 10%

Number of Contracts = 56 contracts

 

I am going to use the $1.5 point drop in bond prices this week to take profits in my short position in the (TLT).

I am there selling my position in the iShares Barclays 20+ Year Treasury Bond Fund (TLT) June, 2017 $128-$130 in-the-money vertical BEAR PUT spread at $1.95 or best.

The Comey testimony starts in a few minutes and anything can happen.

At this price we have captured 77.27% of the maximum possible profit in the spread.

I rarely do two point spreads, and this position caries more than the usual amount of risk.

9.55% is not a huge profit, but is better than a poke in the eye with a sharp stick for only four trading days.

In this kind of market a bird in the hand is worth 1.23 birds in the bush.

The risk reward is no longer favorable for carrying on for the last five trading days going into the June 16 expiration.

If you didn?t do options and bought the (TBT) instead hold on. This fund has much higher to go over time.

This takes me to a rare 100% cash position.

If bonds want to retest the 2017 highs again in coming weeks I?ll be back in there again on the short side.

For a few of you there won?t be much profit in this trade after commissions. That?s because you are greatly overpaying you broker.

Call them and ask for a discount, giving this trade as an example, and I guarantee they?ll give it to you.

Brokers don?t make money on commissions any more. They stay in business by selling your order flow to high frequency traders without your knowledge.

Well done and on to the next trade.

If you are uncertain on how to execute an options spread, please watch my training video on ?How to Execute a Vertical Bear Put Spread? by clicking here at
https://www.madhedgefundtrader.com/ltt-vbpds/

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.

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

Sell 56 June, 2017 (TLT) $130 puts at...............................$5.70

Buy to cover short 56 June, 2017 (TLT) $128 puts at...................$3.75
Net Proceeds:......................................................$1.95

Profit: $1.95 - $1.78 = $0.17

(56 X 100 X $0.17) = $952 or 9.55% in 4 trading days.

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 Douglas Davenport https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Douglas Davenport2017-06-08 10:42:242017-06-08 10:42:24Trade Alert - (TLT) June 8, 2017

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 8, 2017 - MDT Pro Tips A.M. Link to: June 8, 2017 - MDT Pro Tips A.M. June 8, 2017 - MDT Pro Tips A.M. Link to: June 9, 2017 - MDT Pro Tips A.M. Link to: June 9, 2017 - MDT Pro Tips A.M. June 9, 2017 - MDT Pro Tips A.M.
Scroll to top