Adjustments and Comments on Open Trades
SHOP – Shorted 10 Jan $45/40 bull put spread for a net debit of $700. The “mid-point” to close this spread is only 10 cents now, so we recommend closing it at $.10 to book a quick $600 gain since that is 86% of maximum gain and we can eliminate 7.5 more days of risk by closing it. Nice trade!
AMZN – Shorted 10 Jan $760/740 bull put spread (9 DTE) for a net credit of $900. Below is a current daily chart:
Yesterday it gapped up and broke through hourly resistance, showing incredible relative strength to the broader markets. We were bullish on the pattern. As intra-day traders, yesterday you could have added to your bullish position. We mentioned that we were only giving a bull put credit spread (referred to as a “mildly bullish strategy”) idea as opposed to a more bullish bull call vertical spread since we were waiting for the broader markets to show more strength. AMZN rallied without the broader markets.
The “mid-point” to close this spread is only 10 cents now, so we recommend closing it at $.10 to book a quick $800 gain since that is 89% of maximum gain and we can eliminate 7.5 more days of risk by closing it. Nice trade!
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 Option Strategist
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Twitter: @GregCapra
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