Below is a daily chart of Red Hat, Inc. (RHT).
Trade: Consider selling Jan (1/19) $130/139 bear call credit spread (30 DTE) for $1.10/share (current mid-point) or better since extended and spready.
Technical Setup: Bear earnings gap down daily, leaving bearish engulfing weekly and Climactic Sell Setup monthly if closed here.
Option Strategy: Bear Call Credit Spread (BCS).
Stop Loss: $130.
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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