Master Trader swing trades compelling setups using both stocks and options.
Swing trading stocks and options has a holding period of 2 – 10 days and is designed to generate income from capturing the bulk of the high-probability setups on daily charts.
Buying options with a directional bias consumes significantly less capital than trading stock, has less potential max loss, and can generate terrific return on capital.
The Video discusses the technical setup of SBUX and describes how we selected the right strike price and expiration date to stack the odds in your favor.
To see the video, please CLICK HERE
Here was the actual text alert sent to our subscribers via Telegram:
“NEW TRADE IDEA: 1/2: SBUX – Consider buying Jan (1/11) $67/62 bear put debit spread (9 DTE) for around current mid-point of $3.03/share (gives $.47/share of time decay cushion). Bear gap and Sell Setup at Minor Resistance and d50-MA daily, relative weakness. Stop Loss: $64.62 for now.”
Because we bought a put spread instead of long put alone, it is what we refer to as a “mildly bearish trade” since we agreed to cap our Max Gain in return for increasing the probability of profit from selling a further out put.
Below is an intra-day chart of the SPY ETF:
The video shows how SBUX showed great relative weakness as SPY rallied into Minor Resistance at the 10:30 ET Reversal Period.
The position closed slightly against us, but that's what can happen with the Index ETFs lift all boats — even the weaker stocks.
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All the best,
Chief Options Strategist
Managing Director of Master Trader
Trading the Pristine Method — Origin and End
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