Below is a monthly chart of Vulcan Materials Company (VMC).
Trade: Over $127.62, consider shorting Jan (1/19) $115/105 Bull Put Credit Spread (42 DTE) for current midpoint but with limit of $.50/share (currently $.65/share).
Technical Setup: Breakout after bullish consolidation into the r20-MA monthly, Breakout daily, bullish weekly.
Option Strategy: Bull Put Credit Spread (BPS).
Stop Loss: $118.58.
Below is a daily chart of Mercadolibre, Inc. (MELI).
Trade: Over $280.64, consider shorting Jan (1/19) $230/210 Bull Put Credit Spread (42 DTE) for current midpoint but with limit of $.70/share (currently $.82/share). Note: You can short tighter strikes if you are more bullish on pattern to receive a higher credit, but you will have less Cushion if goes against you – ours is very far OTM.
Technical Setup: Breakout after bullish consolidation into the r20-MA daily, bullish weekly and monthly.
Option Strategy: Bull Put Credit Spread (BPS).
Stop Loss: $234.00.
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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