Below is a daily chart of Citigroup Inc. (C), $66.17.
Trade: Under $65.70, consider shorting Sep (9/15) $67 naked calls (5 DTE) for mid-point (closed at $.43/share).
Technical Setup: Breakdown daily and weekly, weak financial sector.
Option Strategy: Short Naked Calls (SC).
Stop Loss: $67.02.
Adjustments and Comments on Weekly Option Trades
9/8/17: RE – Shorted Sep (9/15) $160 naked puts for $.45/share. Note: High risk because involves re-insurance risk and Hurricane Irma threatening massive damage. Stop Loss: None now. Bid $.05/share for the Sep (9/15) $170 naked puts to try to get a free put spread and eliminate remaining risk.
9/8/17: NVDA – Shorted Sep (9/15) $170/175 bear call spread for $.50/share. Stop Loss: $169.22.
9/7/17: NFLX – Shorted Sep (9/8) $172.5 naked puts for $.17/share. Closed for $.01/share in 1 day for 94% of Max Gain.
9/7/17: NFLX – Shorted Sep (9/15) $170/162.5 bull put spread for $.58/share. Stop Loss: $172.28. Mid-point to close is $.26/share, which is 50% of Max Gain in a few hours. Feel free to cover half or all if like, but tighten stop loss to $178.58 to protect gains, and bid $.10/share to close.
Below is a link to individual videos explaining in greater detail the definitions of the main option trading strategies used in the Master Trader Option Strategies Series for Investors and Active Traders to generate wealth and income.
Description of Master Trader Directional and Income Option Trades can be seen HERE
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
Pristine’s Founder and Creator of the Pristine Method
Dan Gibby
Chief Options Strategist
Follow Greg on Twitter, YouTube, and StockTwits to get real-time updates and education:
Twitter: @GregCapra
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NOTE: Master Trader will show opening and closing prices of all stock and option trades. We do not recommend proper share size for your particular trading style, risk tolerance, or account balance. We urge you to calculate your own share size based on your individualized risk parameters, Trading Plan, and familiarity with the proposed trade strategy and risk.
NOTE: Master Trader and its representatives might have existing positions in these and other trade recommendations before or after suggested herein. Additionally, we often manage them differently for internal purposes based on different risk parameters than noted herein.
