Below is a daily chart of Red Hat, Inc. (RHT).
Trade: Consider shorting Dec (12/15) $127/131 bear call credit spread (11 DTE) for mid-point but limit of $.70/share (see video discussion on trade rationale and anticipated bounce to low $123s).
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Technical Setup: -WRB Breakdown daily and Climactic Sell Setup monthly.
Option Strategy: Bear Call Credit Spread (BCS).
Stop Loss: $127.02.
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 of Master Trader
Pristine’s Founder and Creator of the Pristine Method
Dan Gibby
Chief Options Strategist
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