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.
But here are the current Open Trades and Adjustments.
DIA – Sold 10 May $208/212 bear call spread for $.73/share, stopped at $1.45/share. Sold 10 May $203 naked puts for $.79/share to generate additional time decay since the gap/pattern turned bullish. Stop on short put is $203.58.
LRCX – Shorted 10 May 150/155 bear call spread for $.85/share. Stop Loss: None for now; however, as an Adjusting Strategies since it is remaining too strong, over $151.50 ( 5-Min. high), we recommend shorting 10 May 150/145 bull put spread at mid-point to convert into an Iron Fly and generate additional time decay.
AXP – Sold 10 May 81.5/84.5 bear call spread and sold 10 May 76.5/73.5 bull put spread (Iron Condor) for $.48/share. Closed the May 81.5/84.5 bear call spread for 4 cents and the put spread for $.24, for $200 gain.
EIX – Shorted 1000 shares of stock at $78.74. Sold 10 May 77.5 puts for .40/share to convert to a covered put and improve basis to $79.14/share. Cover ½ for $1.00 gain. Back half trail stopped over prior day’s high at $78.86 (made net $.05/share because of profit on short put), for total gain of $550.
FDN – Shorted 1000 shares of stock at $93.47. Sold May $93 puts for $.45/share to convert to covered put (i.e., opposite of covered call) to generate time decay. Stop Loss: $94.32.
SPY – Bought 10 May 235/241 bull call spread for $4.10/share. Sell half for $1.00/share gain. Stopped tiny gain (which only happened because of the short call sold).
NVDA -Shorted 10 May 117/130 bear call spread for $.62/share. Rolled the May 117 short call to the Jun 120 call for a $.35/share credit, plus sold the May 130 long call for $.31/share, giving us an adjusted short basis of $121.28 ($120 + .62 +..35 + .31) if assigned.
R- Shorted 10 May 70/72.5 bear call spread for $.35/share. Closed May spread for $.05/share for over 80% of Max Gain.
HAS – Shorted 10 May $98/95 bull put spread for $.40/share; and shorted 10 Jun $95/90 bull put spread for $.47/share. Closed May spread for $.10/share for over 80% of Max Gain. Stop on June spread is $94.78.
KSU – Shorted 10 May $89/84 bull put spread for $.50/share; and shorted 10 Jun $85/75 bull put spread for $.77/share. Stop Loss: $88.88.
LOW – Bought 10 May 83.5 calls for $2.93/share. Sold 10 weekly (5/12) May $86 calls for $.43/share to lower our cost basis of long call by premium received for the remainder of the week. Stopped break even (which only happened because of the short call sold).
XOM – Shorted 10 May $80/75 bull put spread for $.55/share. Stop Loss: $80.18.
CHK – Shorted 10 Jun $5 naked puts for $.13/share. Stop Loss: $4.98.
R – Bought 10 Jun 70 puts for $4.05. Sell the May $65 puts for $.50/share to convert to bear put diagonal and generate positive theta (time decay income). First target low $65.50 area, and trail stop loss over prior day’s high to protect gains.
FANG – Sold 10 of the following Iron Condor: sell Jun 110/120 bear call spread and sell Jun 90/80 bull put spread for $1.60/share (currently $1.65/share). Stop Loss: None for now, will update as needed.
C – Shorted 10 Jun 62.5/65 bear call spread for $.41/share. Stop Loss: $62.62 on Call Spread. NOTE: If trades over $61, we recommend selling the Jun $57.5/52.5 bull put spread at mid-point (closed at $.37/share) to convert to an Iron Condor and improve cost basis and generate more time decay income.
PENN – Over $19.25, we recommend buying 10 Jun 18/20 bull call spread (36 DTE) for mid-point. CANCEL, BREAKOUT FAILURE AND MARKET WEAK.
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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NOTE: Master Trader will show all trades assuming a 1,000 position for stock, or a 10-lot for options (which represent 1,000 shares of the underlying). However, this is not a recommendation on 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.
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.
