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
http://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.
