With FOMC announcement today at 2 pm ET, we are not recommending new trades now; however, if the QQQ looks weak in the afternoon, we will be considering a bear call spread, which we will update later.
Adjustments and Comments on Open Advisory Letter Trades (Note: We have started posting our trade updates in a separate Report in the Member’s Area. Please see that document for a current reflection on all Open and Closed Trades since the spreadsheet updates immediately). But here are the current Open Trades and Adjustments.
BYD – Bought 10 Bull Call Diagonal as follows: buy Jun $20 calls and selling May $23 calls for $2.05/share. Nice earnings gap, let’s sell to close at $2.90/share mid-point here to book nice ROI gains.
DIA – Sold 10 May $208/212 bear call spread for $.73/share, stopped at $1.45/share. Sold 10 May $203 naked puts for $.79/share to generate additional time decay since the gap/pattern turned bullish. Stop on short put is $203.58.
LRCX – Shorted 10 May 150/155 bear call spread for $.85/share. Stop Loss: None for now, we will use Adjusting Strategies if necessary.
PM – Under $109.75, we recommend selling 10 Jun 115/120 bear call spread (44 DTE) for a limit of $.45/share. Stop Loss: $115.64.
INTU – Shorted 10 May $120/115 bull put spread for $.27/share. Stop Loss: None.
AXP – Sold 10 May 81.5/84.5 bear call spread and sold 10 May 76.5/73.5 bull put spread (Iron Condor) for $.48/share. Stop Loss: None.
XBI – Shorted 10 May 74/77 bear call spread for $.38/share. Stop Loss: $73.02.
EIX – Under $78.75, we recommend shorting 1000 shares of stock. Target: $76-77. Stop Loss: $81.22.
IBM – Under $158.52 (under 5-Min. low), we recommend buying 10 May $165 puts and selling 10 May $157.5 puts (16 DTE) at mid-point. Stop Loss: $160.82.
Happy trading! If you have any questions or comments, please e-mail Greg Capra at Greg@mastertrader.com or Dan Gibby at Dan@mastertrader.com
All the best,
Greg Capra
Managing Director and Pristine Founder
Dan Gibby
Chief Options Strategist
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