Below is a daily chart of Equifax Inc. (EFX).
Trade: Over $115.40, consider shorting Sep (9/15) $100/90 bull put spread (3 DTE) for a limit of $.28/share (currently, mid-point of $.30/share but spready). Note: High Risk because company’s egregious data breach release and litigation liability, but 100% Implied Volatility Rank gives us short-term income trade with big Cushion (far OTM strike) with few days of risk to expiration.
Technical Setup: No compelling pattern, just stabilization hourly chart and deeply oversold short-term.
Option Strategy: Bull Put Credit Spread (BPS).
Stop Loss: $110.28.
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
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Twitter: @GregCapra
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