Adjustments and Comments on Open Advisory Letter Trades
TLT – Sold 10 May $119/114 bull put spread for $.59/share. Stop Loss: $119.88.
SPY -Bought 10 Apr $238 puts for $3.30/share. Targets low $232 and $230. Mid-point to close is now $4.17 so we have $.87/share in open gain. Move stop $234.52 to protect gains.
XBI – Sold 10 May $71/75 bear call spread for $.59/share. Stopped at $.92/share for $330 loss.
QQQ – Last night, we said “Under $130.78, we recommend selling 10 May 134/138 bear call spread (36 Days to Expiration (DTE)) for mid-point (currently $.74/share).” However, it gapped under the entry which requires us to use a 5-Min. low as the new entry provided the gap is not too excessive. Please see our Trading Rules in the Member’s Section. Stop Loss: $133.52. At the 10 ET Update, we said “Still a go under $130.66” since if that triggered, it would be bearish.
AMZN – We recommend selling 10 Apr 925/935 bear call spread (8 DTE) for mid-point (currently $.84/share). However, it gapped under entry, and didn’t trade under the 5-Min. low, and now the desired net credit too low if triggers, so cancel trade.
AMD – Sold 10 May $16/18 bear call spread for $.23/share. Because of earnings, closed at $.15/share for $80 gain.
PIR – Sold 10 May $6 naked puts for a limit of $.25/share. Stop Loss: $6.38. Quotes wide after earnings, but bid $.25 to close break even since not acting right.
LOW – Sold 10 May 85/90 bear call spread for $.32/share. Stop Loss: $84.22.
Please be sure to read our Master Trader Guidelines for Trading the Open and Gaps
Published in the Member’s Section. Among other things, it provides:
Triggers at Market Open.
Never trade in first five (5) minutes after market open (this includes entering new trades or taking stops). Thereafter, use the 5-Min. high/low as the revised entry point for new bullish/bearish trades, provided the security has not moved over 10% of its intended Target. For stops which trigger within the first five minutes, use a 5-Min. low/high for bullish/bearish positions.
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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