Daily Income Trade on Overbought IWM 10-6-17

Below is a daily chart of iShares Russell 2000 ETF (IWM). Trade:   Under $149.68 (5-Min. low), consider shorting Oct (10/6) $150.5 naked calls (today expiration) for mid-point but a minimum of $.20/share (closed at $.27/share).  Note:  We like selling premium the day...

Directional Short Idea on Lagging PG 10-6-17

Below is a daily chart of Procter & Gamble Co. (PG). Trade:    Under $91.94, consider buying Oct (10/13) $93.5 puts (7 DTE) for a limit of $1.65/share (only $.08/share of time value for the benefit of leverage and limited risk). Technical Setup:   Sell Setup at...

New Weekly Income Trade Ideas 10-4-17

Below is a daily chart of Chipotle Mexican Grill, Inc. (CMG). Trade:  Consider shorting Oct (10/6) $295/290 bull put spread (3 DTE) for current mid-point but minimum of $.50/share (closed at $.50/share).  Note:  94% Implied Volatility Rank provides “rich”...

Two Bearish Income Trade Ideas 10-3-17

Below is a daily chart of Micron Technology, Inc. (MU). Trade:  Under $39.40, consider shorting Oct (10/6) $41/44 bear call spread (4 DTE) for mid-point (closed at $.39/share). Technical Setup:   Climactic Sell Setup daily. Option Strategy:   Bear Call Credit Spread...

Income Trade on Oversold Brewery 10-2-17

Below is a daily chart of Molson Coors Brewing Company (TAP). Trade:  Consider shorting Oct (10/6) $81/79 bull put spread (4.5 DTE) for current mid-point of $.27/share. Technical Setup:   Climactic Buy Setup daily and stabilizing hourly chart. Option Strategy:   Bull...