Below is a daily chart of .Square, Inc. (SQ), $17.04.
Trade: We recommend buying 1,000 shares of stock over today’s high of $17.20 as a swing trade.
Technical Setup: Pull back to Minor Support after Pro Gap breakout on the daily and weekly charts.
Target: $17.90+.
Stop Loss: $16.58.
Adjustments and Comments on Open Advisory Letter Trades
JWN – Sold 10 Mar $42.5/37.5 bull put spread for $230. Stop Loss: $42.18.
TLT – Sold 5-lot Apr $123/128 bear call spread for $.57/share and 5-lot for $.53/share for average of $.55/share. Nice gap down, move stop loss $119.52 to protect gains.
ROST – Sold 10 Apr $70/75 bear call spread for $550. Stop Loss: $69.62.
PCAR – Sold 10 Apr $62.5/55 bull put spread for $520. Stopped at $67.18 for $.50/share (break even). Since stock is at Major Resistance and market overbought, sell 10 Apr $70/72.5 bear call spread for $650 or better to convert to Iron Condor. Stop loss on the call spread is $69.52. This will bring in more premium to profit from time decay if PCAR remains range bound. Mid-point to close to close call spread is $.53/share so trail stop over a prior bar’s high to protect small profits.
FXA – Sold 5 (half lot) Apr $77/79 bear call spread for $.40/share and 5-lot for $.36/share for average basis of $.38/share. Mid-point to close is $.23/share. Bid $.05/share to close as looks lower, move stop loss $75.72.
BA – Trade #1: Sold 10 $187.5/195 bear call spread for $.86/share. Trade #2: Sold 10 $195/210 bear call spread for $.98/share. Move stop break even.
VIAB – Sold 10 Apr $45/47.5 bear call spread $.43/share. Stop Loss: $45.12.
EL – Sold 10 Apr $87.5/92.5 bear call spread for $.50/share. Mid-point to close is $.30/share, so bid $.25/share to book 50% profit and move stop loss break even.
AI – Shorted 1,000 shares of the stock at the opening price of $14.43. Trail stop over prior day’s high to book gains.
EEM – Sold 10 Apr $39/40.5 bear call spread for $.36/share. Stop Loss: $38.52.
NFLX – Trade #1: Sold 10 Mar $145/152.5 bear call spread for $.65/share. Mid-point to close is $.43/share so move stop break even. Trade #2: Sold 10 Apr $150/170 bear call spread for $2.90/share. Mid-point to close is $2.51/share so move stop break even.
XON – Sold 10 Apr $20/18 bull put spread for $350. Acting fine but spreads widened, bid $.15/share to close. Stop Loss: $19.88.
HTZ – Sold 20 Apr $20/17.5 bull put spread for $600. Stop Loss: $19.48.
KBH – Purchased 10 Jul $15 calls (136 DTE) and sold the Apr 19 calls (45 DTE) for a net debit of $2.95/share. Note: Holding over earnings (4/12) is higher risk. Stop Loss: $15.88.
HOG – Sold10 Apr $55 naked puts at $.93/share. Bid $.46/share to close for 50% of Max Gain. Stop Loss: $55.48.
KORS – Sold 10 Apr $40 naked calls for $.40/share. Close now at mid-point $.20/share for $200 gain (50% of Max Gain).
UA – Bought 10 Apr $22.5 puts for $4.25/share. Sold Mar $17.5 puts for .25/share to convert to Bear Diagonal and lower cost basis to $4.00/share. Move stop loss $18.82.
UAL – Trade #1: Sold 10 Apr $79/82.5 bear call spread for $530. Trade #2: Sold 10 Mar $77/80 bear call spread for $270. Stop Loss: $77.42.
GPI – Sold 10 Apr $85/90 bear call spread $.47/share. Stop Loss: $83.22.
CSX – We recommend selling 10 Mar $50/55 bear call spread (37 DTE) for around $.72/share (closing mid-point). Note: Close before 4/18 earnings. Stop Loss: $50.32.
NMM – Purchased 2,000 shares of stock at $2.25. Stop Loss: $1.84.
WTW – Over $18.50, we recommend selling 10 Apr $15/12 bull put spread at mid-point (currently $.52/share). Stop Loss: $17.47.
WFT – Sold 10 Apr $6 naked puts spread for $.19/share. Stop Loss: None for now since bullish long term.
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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