Trade Alert - (TTD) August 14, 2019 - TAKE PROFITS - EXPIRATION
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.
Tech Trade Alert - (TTD) – TAKE PROFITS - EXPIRATION
EXPIRATION of The Trade Desk, Inc. (TTD) August 2019 $227.50-$232.50 in-the-money vertical BULL CALL spread at $5.00
Closing Trade
8-16-2019
expiration date: August 16, 2019
Portfolio weighting: 10%
Number of Contracts = 23 contracts
Expiration Friday is here, meaning the stock stayed above our strike prices and our spread will expire at full profit.
The profits will hit your bank account.
We had so much cushion on this stock that even in a volatile trading week, all it took was two days of calm to take us safely through to profits even though absorbing one horrid trading day of -6%.
The stock would have had to drop everyday for us to get even close to losing money on this trade.
The Trade Desk, Inc. (TTD) is the best tech company you have never heard of.
What do they do?
They offer a self-service omnichannel software platform that enables clients to purchase and manage data-driven digital advertising campaigns.
With an avalanche of new streaming assets coming online shortly, this stock has driven higher.
This trend can be echoed by Roku with that stock exploding because of the digital ads coming through the pipeline that will inflate the bottom line.
The stock was down around 5% when we strapped on this deep in the money bull call spread.
This extremely short-dated bet of less than 5 trading days that the stock wouldn’t fall more than 10% worked out after a reprieve on Thursday and Friday.
The extremely heightened volatility has given traders good prices and even though I am not bullish, we can play it from the long end.
Prices are whipsawing each way, please execute limit orders or else the filled at market prices will make you want to tear your hair out.
The last week has been a brutal trading week and the best place to hide out is in high-quality cloud names.
Here are the specific trades you need to exit this position.
Expiration of bought long 23 August 2019 (TTD) $227.50 calls at……$20.55
Expiration of sold short 23 August 2019 (TTD) $232.50 calls at …..….$15.55
Net Proceeds:…………..........................……………….………..………….…....$5.00
Profit: $5.00 - $4.25 = $0.75
(23 X 100 X $0.75) = $1,725 or 1.72% in 5 trading days.
