Adjustments and Comments on Open Advisory Letter Trades
KBH – Purchased 10 Jul $15 calls (136 DTE) and sold the Apr 19 calls for a net debit of $2.95/share. Close half now at $3.70/share for $.75/share gain (25% ROI), and move stop loss to $18.78.
CSX –Bought 10 Apr $50/46 bear put spread for $2.18/share. Closed half at $2.90/share. Mid-point to close is $2.88/share, trail stop over prior day’s high and place GTC limit order to sell spread for $3.50/share. Note: Close before 4/10 earnings.
WFT – Sold 10 Apr $6 naked puts spread for $.19/share. Bullish gap and action today. Move stop loss $5.78.
OIH – Sold 10 Apr $29/27 bull put spread for $.24/share. Stopped at $.53/share for $290 loss.
VLO – Sold 10 Apr $65/60 bull put spread for $.44/share. Not acting well, but maintain stop loss $65.28.
AMZN – Sold 10 Apr $825/815 bull put spread for $1.10/share. Unfortunately got caught in this bullish trade before market selloff. Try to close break even on bounce with market uncertainty. Gapped under stop loss but 5-Min. low held so move stop to $833.38.
WYNN – We are monitor for potential breakout on the weekly and monthly charts.
ADI – Trade #1: Sold 10 Apr $85/90 bear call spread for $.60/share. Close mid-point $.20/share for $400 gain. Trade#2: Shorted 1000 shares of stock at $81.64 for swing trade. Cover half 80.64 for $1 gain, move stop loss to $81.64.
CRM – Sold 10 Apr $85/90 bear call spread for $.49/share. Mid-point to close is $.25/share, move stop loss to 60-Min. high ($81.46).
BBY – Sold 10 Apr $47/50 bear call spread for $.29/share. Holding support so sell 10 Apr (25 DTE) $43/40 put spread for mid-point (currently $.38/share) to more neutralize the position and take in more time decay. This is referred to legging into an Iron Condor (i.e., OTM call and put spreads). Stop loss on call spread is $46.52. Stop loss on put spread is $43.48.
COST – Sold 10 Apr $172.5/177.5 bear call spread for $.66/share. Close $32/share for $340 gain (50% Max Gain).
ABT – Bought 10 Apr $46.5 puts for $2.20/share (under 5-Min. low of $44.51). Note: Earnings 4/18. Stop Loss: $45.86.
MO – Shorted 1,000 shares of stock under $75.15. Closed half for $1.50 gain. Target back half is low $72s so will report closing back half $72.51 for total $2,070 gain.
FCX – Over $13.16 (the entire consolidation area), we recommend selling 10 Apr $12/10 bull put spread for the mid-point (currently $.23/share). Gapping under support, cancel trade.
EWP -We recommend selling 10 May $29 naked puts at a limit of $.75/share. Note: we would not typically trade this illiquid stock but our strategy is acceptable based on our outlook. Stop Loss: None, we would love to own EWP at a Cost Basis of $28.25 if assigned.
QQQ – Purchased 10 Apr $132.5 puts at $2.98/share. Move stop loss $131.22.
JBL- Bought 10 Apr $28 calls for $1.40/share. Stop Loss: $28.18.
AMAT – Sold 10 Apr $40/42 bear call spread for $.37/share. Stop Loss: $39.82.
MU – Sold 10 Apr $30/33 bear call spread for $.40/share. Stop Loss: $30.06.
AAPL – Gapped under $139.69 entry so new entry is under 138.62 (5-Min. low) to sell 10 Apr weekly (4/17) $144/147 bear call spread (17 DTE) at mid-point (currently $.43/share). Stop Loss: $143.12.
CSCO – Gapped under $33.80 entry so new entry is under $33,75 (5-Min. low) to short 1000 shares of stock. Target: $32.00 – 32.50. Stop Loss: $34.52.
XLK – Shorted 1000 shares of stock at $52,34 (5-Min. low). Target: $32.00 – 32.50. Stop Loss: $34.52.
WDC – Over 30-Min. high, sold 10 Apr $72.5/67.5 bull put spread for $.72/share. Stop Loss: $72.88.
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 and Pristine Founder
Dan Gibby
Chief Options Strategist
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