Trade Adjustment
12/26: M – Shorted Jan (1/19) $25/21 Bull Put Credit Spread for $.49/share. 1/1: We initially had a stop loss of $25.08 which is close. Although this Breakout Failure is unfortunate, it is still within the consolidation at r20-MA and nearing major support (prior pivot low).
Because of the deep retracement, consider shorting Jan (1/19) $27/30.5 Bear Call Credit Spread for at least $.46/share (closed at $.51/share) to convert into an iron condor and generate more time decay income. No stop loss for now.
Additionally, the 50-MA on daily has turned up and the weekly and monthly charts are bullish with an explosive move from deeply oversold condition. Since the pattern is not destroyed, it makes sense to roll as choppy consolidation is expected from the multiple time frames.
As such, we have decided to not use a stop at this time. If necessary (i.e., Macy’s trading below $25 into expiration), we will roll to the February expiration to generate more time decay income.
Miscellaneous Member Documents and Reminders:
Adjustments and Comments on Open and Closed trades in Master Trader’s Market Edge Advisory Letter. Note: Our Trade Updates are timely posted in a separate Report in the Member’s Area.
Please CLICK HERE to see that document for a current reflection on all Open and Closed Trades since the spreadsheet updates immediately and will always be more current than this e-mail update.
Please see Master Trader Guidelines for Trading the Open and Gaps in Member’s Area for rules on trade entry, gaps, etc.
Below is a link to individual videos explaining in greater detail the definitions of the main option trading strategies used by Master Trader in its advisory letters to generate wealth and income.
Description of Master Trader Directional and Income Option Trades can be seen HERE
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Pristine’s Founder and Creator of the Pristine Method
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