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 of expiration with a compelling pattern because of the rapid theta (time decay) premium, which has to go to near 0 at market close.
Technical Setup: Climactic Sell Setup and Narrow Range Bars daily, with pre-market small bearish bias on broader markets since all extended.
Option Strategy: Short Naked Calls.
Stop Loss: $150.62, but also close them into close if trading over $150.50.
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
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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.
