New Put Selling Candidates
Below is a daily chart of GoPro Inc. (GPRO), $9.98.
Trade: We recommend selling 10 Mar 9/7 bull put spread (50 DTE) for a net credit of $550. Note: Higher risk with 2/2 earnings, which could be make-or-break for this oversold stock.
Strategy: Gap breakout from long bottoming pattern daily and weekly.
Max Gain: $550 premium received which is realized if GPRO closes above $9 short strike by expiration.
ROI: 40% in 50 days ($550/$1,600 max loss), with 15.3% cushion to break even of $8.45.
Max Loss: $1,600 if GPRO closes under $7 strike, with cost basis of $8.45 if assigned.
Stop Loss: $8.58
Below is a daily chart of FedEx Corporation (FDX), $192.37.
Trade: Over $192.80, we recommend selling 10 Feb 185/175 bull put spread (22 DTE) for a net credit of $800 or better (current mid-point is $.84/share).
Strategy: Bullish consolidation from Bullish Wide Range Bar (+WRB) Igniting breakout from consolidation.
Max Gain: Premium received.
ROI: 8.7%, with 4.2% cushion to break even of $184.20.
Max Loss: Cost basis of $184.20 if assigned.
Stop Loss: $184.78
Adjustments and Comments on Open Trades
WIN – Purchased stock at $7.90. Move stop loss to break even.
SALT – Sold 10 Jun $5 puts for a net credit of $500. Maintain stop loss at $5.48. Because spreads widened, place GTC limit to close at $.10/share for 80% max profit.
SPY – Purchased at $227.60. Move stop to under $229 to protect the gains and look to sell into strength today or tomorrow. We will look to reload next week on a pull back.
AMZN – Purchased 5 Feb $775/850 bull put spread (24 DTE) at $42.75/share. Nice move today, place limit sell for half for 10-point gain (or 30-Min low tomorrow if stalls). Move stop to under $833 to protect the gains and look to sell into strength today or tomorrow
HD – Purchased 10 Feb (24 DTE) $137 calls for $6.90/share; and (b) sold 10 Feb $133/127 bull put spread (24 DTE) for $.57/share. On the long call, we recommend selling the weekly (2/3) $139 calls for $.65 to bring in premium to reduce cost basis and leg into a bull diagonal. Move stop 136.48.
SPG – We recommend selling 10 Feb $170 puts for a net credit of $1,000 or better. Has not hit that limit, despite the stock falling, so let’s cancel trade because acting iffy into 1/31 earnings.
CPLP – Purchased stock between $3.55 and $3.67. Note: holding over 1/31 earnings is higher risk but we like the stock and sector long term. Targets low $5 and $6.25. Stop .loss: $3.14.
TWLO – Sold 10 Feb $26 puts for $700. Stop loss: $29.88.
MOS – Sold 10 March $30 puts for average basis of $650. Stop loss $29.88.
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 Options Strategist
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Twitter: @GregCapra
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