As active investors and traders, we are always in the search for relatively quick income trades.
Day trading offers opportunities almost every day, but not suitable for everyone. Especially for those that have a regular job. Or not interested in sitting in front of the screen all day.
If that’s you, you’re not excluded from the type of quick income trades we’re going to show you.
Master Trader Strategies – MTS uses compelling price patterns with alignment on Multiple Time Frames for trading and investing ideas.
There are other MTS Concepts that form a Complete Strategy, and we are going to share some of those with you to understand the reasoning for the great trading opportunities that were taken.
Below, you will learn the What, Where and Why in two recent trades, TSLA and AMZN that were entered and close the same day.
At Master Trader, the Education Never Stops.
Below is a daily chart of Tesla, Inc. (TSLA):
The MTS Thought Process for the Trade
TSLA was showing relative strength to the other stocks that were lower, and formed a bullish Wide Range Bar (+WRB) Breakout from Major Support and the 200-MA (Red line) last Thursday.
TSLA moved lower three times and quickly moved back up with three higher low bars to the left and right of the down bars (Blue Dots) forming a Major Support area. That is bullish.
Friday, when we sold the put spread (which expired in hours), TSLA negated the minor gap down and began to move higher while other stocks were flat, showing relative strength.
We sold the $665 puts ($5 below the day’s low) and bought the $650 puts, making it a bull put credit spread as it traded above the 5-Min. +WRB.
We received $.68/share and we can keep the money as long as TSLA closed above $665 at the end of the day.
The Text in the blue box of the daily chart was the alerts sent to subscribers.
If you sold 1 contract (representing 100 shares), you would take in $68.00; 10 contracts, $680.00.
The premium received is pure profit when the credit spread expires worthless.
Our protective stop was the day’s low, and we managed in between.
We routinely recommend closing even 0 DTE (Day to Expiration) trades at 1-2 cents to fully ensure no gap risk.
The Weekly Options Trader focuses solely on selling options and credit spreads expiring in 10 days or less around compelling MTS price patterns to generate weekly income. The fewer days the better!
The letter is updated by real-time text messages to your phone and computer with a chart of the setup, entry price and stop-loss.
Text updates follow to raise stops or close the trades.
Read about the AMZN trade below
We love hearing from our subscribers about their successes and journey towards trading mastery!
“Hi Greg & Dan!
I have been following you for about a year and a half after being burned by several churn and burn operations. I have been looking for a solid education, and I believe you guys are the real deal. I have recently taken a couple of small courses with you and plan on diving into the more advanced courses when I have completed these. You have the ring of truth and sincerity about you.
Thank you for the advice and for all you do! I never miss your Wednesday classes.”
Your Friend,
Brian L.
Master Trader Tip: Shorting credit spreads have a higher probability of profit since we make money as long as the underlying closes (expires) above the short put strike price in a few hours!
Below is a daily chart of Amazon.Com, Inc. (AMZN):
The MTS Thought Process for the Trade
We also love selling 0 Days to Expiration (DTE) naked options and credit spreads on earnings stocks.
With AMZN, the daily was a very compelling pattern because it was a significant gap to Major Support near the 200-MA, a widely watching level by institutional investors as likely buy points.
With a such a sizeable gap lower to price support and the 200-MA (red line), we know that institutions were going to buy that area.
Because of the extreme high volatility in the opening hour as the market digests the news and gap, option premiums are high.
So we look for a candlestick price pattern Setup using MTS to sell 0 DTE options.
Then we simply monitored AMZN on an intra-day time frame to get a tradable MTS price pattern.
We find the setup, monitor it for the entry and send you the trade alerts
Here, since the short strike was so far away below the 200-MA, we were merely looking for stabilization.
Notice where we gave the trade idea based on the bullish 2-Min. chart. The Text in the blue box was the alert to subscribers.
We closed half for a quick $1.70/share gain (71% of Max Profit), and the back half at 2 cents to fully ensure no gap risk!
To learn how to find, trade, and manage these short-term option Income Trades on your own, you owe it to yourself to take our Mastering Advanced Credit Spreads
Use this link for the Mastering Credit Spread Course and receive 3-Months of the Weekly Options Letter FREE!
These trades are easy to find, enter and manage for any type of trader or investor.
Our Subscribers also get lifetime Coaching — the next Options Coaching is Tomorrow 8/3/21!
“Thank you Dan and Greg for your Patience and Service! You guys really are Master Traders! 7 Years I have been Trading, and not till I met MT did I start Making Money, and Making Money Fast. Thanks again Guys…..”
Carlos H.
“Hi coach!
Just want to say the consistency on my end has been…. well, CONSISTENT!
Since I started learning from MT, my batting average & confidence have increased 10 fold.
It’s finally becoming a habit for my brain to look for the “something something bar” and/or a “tell” before taking a trade (of course, I still make sure to have a compelling pattern with void and I always start with the daily chart)…
I think I would’ve thrown in the towel by now if I didn’t discover MT. I hope u and Greg continue to do this for a VERY LONG TIME! your green room, daily recap vids, weekly education are so valuable and priceless. I wish Greg’s old students would come and re-learn some of the things since I still see that they use the old methods (very tight stop scalpers)…
again, THANK U FOR ALL THAT U AND GREG DO! You both are really the best mentors in this industry! cheers~”
best,
Rog Y.
Master Trader and You Building Your Financial Future Together!
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
Dan Gibby Chief Options Strategist
