Earnings Short Strangle on RH 12-5-17

Below is a daily chart of Restoration Hardware (RH). Trade:  Consider shorting Dec (12/8) $81 naked puts and $121 naked calls (3.5 DTE) for around current mid-point of $1.00/share.  HIGHER RISK EARNINGS TRADE (earnings after bell 12/5). Technical Setup:   Bullish...

OSTK a go with higher strikes 12-4-17

12/4: OSTK – Consider shorting Dec (12/8) $40/35 Bull Put Credit Spread (4 DTE) for current mid-point of $.50/share (we had in Weekly Letter last night to short $35/30 into weakness, but the gap up turned it into a Bull Gap Surprise pattern and we didn’t get...

New Weekly Income Trades 12-3-17

Below is a daily chart of Overstock.com, Inc. (OSTK). Trade:  Consider shorting Dec (12/8) $35/30 Bull Put Credit Spread (5 DTE) for limit of $.50/share (closed at $.37/share, but it is a falling knife now and we are wanting price improvement with the stock moving...

Income Trade on Overbought Tech Stock 12-1-17

Below is a daily chart of Texas Instruments Incorporated (TXN). Trade:   Under $96.45, consider shorting Dec (12/18) $99/102 bear call credit spread (7 DTE) for mid-point but limit of $.34/share (closed at $.40/share). Technical Setup:   Bearish 1-2-3 Consolidation...

FANG Stocks Weakening 11-29-17

Below is a daily chart of Netflix, Inc. (NFLX). Trade:   Consider shorting Dec (12/8) $200/205 bear call credit spread (9 DTE) for around current mid-point of $.61/share. Technical Setup:   -WRB Breakdown negating yesterday’s +WRB Breakout (Bull Trap) daily. Option...

Solar Stocks Back in Focus 11-29-17

Below is a daily chart of First Solar, Inc. (FSLR). Trade:  Over $63.10, consider shorting Dec (12/8) $59.5/54.5 Bull Put Credit Spread (9 DTE) for a limit of (closed at $.97/share). Technical Setup:   Breakout daily/weekly after bullish multi-week consolidation...