Wednesday was an inside day for some of the broader markets and stocks. An inside day trades below the prior day’s high and above its low, so is neutral or construed as “marking time.” The inside day’s high and low will be our first reference point of resistance and support. We think that there will not be any move of significance in the broader markets, but the Transports are getting weaker and that is always a concern. There is more updated in the video.
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New Trade Ideas in Mixed Markets
Below is a daily chart of The Boeing Company (BA), $238.09.
Trade: Under $237.15, consider shorting Sep (9/15) $245/255 bear call spread (22 DTE) at mid-point (closed at $1.26/share).
Technical Setup: Anticipated breakdown from multi-week consolidation after Climactic Sell Setup daily.
Option Strategy: Bear Call Credit Spread (BCS).
Stop Loss: $244.52.
Below is a daily chart of SINA Corporation (SINA), $103.86.
Trade: Consider shorting Sep (9/15) $95/85 bull put spread (22 DTE) for a limit of $.67/share or better since extended intra-day.
Technical Setup: Breakout daily/weekly.
Option Strategy: Bull Put Credit Spread (BPS).
Stop Loss: $98.75.
Below is a daily chart of The Hershey Company (HSY), $107.44.
Trade: Over $108.00, consider buying Sep (9/15) $102/109 bull call spread (23 DTE) for mid-point (closed at $4.92/share).
Technical Setup: Breakout from bottoming pattern daily.
Option Strategy: Bull Call Spread (BCS).
Stop Loss: $106.48.
Below is a daily chart of McDonald’s Corporation (MCD), $158.81.
Trade: Under $158.40, consider shorting Sep (9/15) $160/165 bear call spread (22 DTE) at mid-point (closed at $.86/share).
Technical Setup: Anticipated breakdown, extended all time frames, time decay trade at Major Resistance.
Option Strategy: Bear Call Credit Spread (BCS).
Stop Loss: $160.12.
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
Follow Greg on Twitter, YouTube, and StockTwits to get real-time updates and education:
Twitter: @GregCapra
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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.
