Trade Alert - (TTD) August 12, 2019

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 - The Trade Desk, Inc. (TTD) – BUY

BUY The Trade Desk, Inc. (TTD) August 2019 $227.50-$232.50 in-the-money vertical BULL CALL spread at $4.25 up to $4.45

Opening Trade

8-12-2019

expiration date: August 16, 2019

Portfolio weighting: 10%

Number of Contracts = 23 contracts

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 is down around 5% today and this is an extremely short-dated bet of less than 5 trading days that the stock won’t fall more than 10%.

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.

It’s not always like this.
Here are the specific trades you need to execute this position:

Buy 23 August 2019 (TTD) $227.50 calls at………….………$33.00

Sell short 23 August 2019 (TTD) $232.50 calls at………….$28.75
Net Cost:……………………..…….………..…….....$4.25

Potential Profit: $5.00 - $4.25 = $0.75

(23 X 100 X $0.75) = $1,725 or 17.25%

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 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.

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.