Adjustments and Comments on Open Advisory Letter Trades (Note: We have started posting our trade updates in a separate Report in the Member’s Area. Please see that document for a current reflection on all Open and Closed Trades which will be updated nightly). But here are the current Open Trades and Adjustments.
HD –Sold 5 May (5/5 weekly) 150/155 bear call spread for $.68/share and sold other half lot at $.55/share. Gapped over our $150.22 stop so move to 151.62.
XLV – We did two trades depending on your trading preference: (a) shorted 1,000 shares of XLV at $73.77; and (b) sold 10 May 75/78 bear call spread for $.49/share. Stop Loss: $74.82.
IWM – Sold 10 May 139/144 bear call spread for $.76/share. Gapped over our $138.22 stop so move to $139.42.
DIA – Sold 10 May $208/212 bear call spread for $.73/share. Maintain stop loss $208.22 on call spread. Over $207.65, we recommend selling 10 May $203 (25 DTE) naked puts at mid-point (currently $.80/share) to generate additional time decay since the gap/pattern turned bullish. Note: if this does not trigger today, then cancel and we will watch for better entry. With this bullish gap, ideally we want less than 50% gap fill to remain bullish on it. Stop on short put is $203.58.
JBL – Shorted 10 Jun $27/23 bull put spread for $.42/share. Acting well so move stop loss $27.88.
BYD – Bought 10 Bull Call Diagonal as follows: buy Jun $20 calls and selling May $23 calls for $2.05/share. Note: We typically like to leg into BCD but with earnings 4/25/17 and mixed market internals, we want to sell the OTM call immediately to generate some time decay and lower cost basis of long call. Move stop loss $21.18. Note: earnings 4/25/17 so holding is higher risk.
BX – Gapped over $31.10 entry. With large market gap, new entry of buying 1000 shares of stock is over 30-Min. high. Not acting right so let’s cancel for now.
LONG WATCH: AMGN and DVMT.
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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