Bullish Trade Ideas With SPY Strength
Below is a daily chart of S&P 500 ETF (SPY), $227.77
Trade: If SPY is trading over $227 into the close, we recommend you buy it
Strategy: Anticipated breakout on daily and weekly charts after false breakdown and bullish consolidation.
Max Gain: Unlimited.
Stop Loss: $225.25
Below is a daily chart of The Home Depot, Inc. (HD), $138.12.
Trade: Over $138.50, we recommend two bullish trades: (1) buy 10 Feb (24 DTE) $137 calls (currently $6.70/share); and (b) selling 10 Feb $133/127 bull put spread (24 DTE) at midpoint (currently .61/share). On the long call, we will look to leg into a bull diagonal (i.e., shorting weekly OTM calls against the long Feb call) over time.
Strategy: Bullish Wide Range Bar (+WRB) breakout yesterday from bullish consolidation on daily and weekly charts.
Max Gain: Unlimited on long call; credit received on bull put spread.
Max Loss: Debit on long call; spread width less credit received on put spread.
Stop Loss: $134.28
Below is a daily chart of Amazon.com, Inc. (AMZN), $817.50.
Trade: Over $822.90, we recommend buying 5 Feb $775/850 bull put spread (24 DTE) at mid-point or better (currently mid-point is $40.80/share).
Strategy: Continuation of breakout from bullish consolidation on daily and weekly charts into 2/2 earnings (but close prior to earnings).
Max Gain: Spread width less debit.
Max Loss: Debit.
Stop Loss: $802.98
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 Option Strategist
Follow Greg on Twitter and StockTwits to get real-time updates:
Twitter: @GregCapra
