The broader markets were relatively quiet Tuesday with most ending with an inside day — except the DOW Industrials that made another new all-time high. Seems that the markets are on hold in front of the FOMC announcement tomorrow at 2:00 ET. Typically, the market is volatile around the time of the announcement and after, but a close above or below Tuesday should set the direction short-term.
New Trade Ideas
Below is a daily chart of McDonald’s Corporation (MCD).
Trade: Under $155.95, consider shorting Oct (10/20) $160/165 bear call spread (30 DTE) for mid-point but a limit of $.80/share or better (closed at $.95/share).
Technical Setup: Bearish consolidation in the lower half of a Bearish Wide Range Bar, negating a bullish Breakout bar on daily chart.
Option Strategy: Bear Call Credit Spread (BCS).
Stop Loss: $158.42.
Below is a daily chart of The Walt Disney Company (DIS).
Trade: Under $97.50, consider shorting Oct (10/6) $99/102 bear call spread (16 DTE) for mid-point (closed at $.79/share).
Technical Setup: Breakdown from bearish consolidation in the lower part of a Bearish Wide Range Breakdown Bar on daily chart.
Option Strategy: Bear Call Credit Spread (BCS).
Stop Loss: $99.02.
Adjustments and Comments on Open Advisory Letter Trades Note: Our Trade Updates are timely posted in a separate Report in the Member’s Area. Please see that document for a current reflection on all Open and Closed Trades since the spreadsheet updates immediately and will always be more current than this e-mail update. Thank you.
NOTE: Please see Master Trader Guidelines for Trading the Open and Gaps in Member’s Area for rules on trade entry, gaps, etc.
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
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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.
