NEW TRADE IDEA:
7/10: DIS – Over $106.07, consider shorting Jul (7/27) $103/100 bull put credit spread for around closing mid-point of $.47/share (17 DTE). Breakout from bullish consolidation on r200-MA daily, Master Trader Buy Setup weekly. Stop Loss: $103.38.
Here is the setup to place this bull put credit spread at the closing mid-point with a limit price (you pick own contract size) in a single order:
Here are the daily and weekly charts of Disney:
6/29: DBX – Shorted Jul (7/20) $30/25 bull put credit spread for $.60/share. Bullish Engulfing Bar on Major Support daily, Bottoming Tail weekly. 7/10: Mid-point to close is $.35/share, move Stop tighter of breakeven or $29.88, bid $.10/share to close.
Here an explanation of the original trade:
One of our favorite statements in selling options/spreads is: THE STOCK WENT AGAINST ME AND I STILL MADE MONEY! On a 10-lot, you could close for a $250 gain now if desired.
Observe how it retraced against us after our original entry but we never adjusted anything because it held the prior low from the +WRB engulfing on 6/28 which set up the trade. This is because the value of those put options which we sold have gone down over time through time decay (Theta).
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Greg Capra
Managing Director of Master Trader
Trading the Pristine Method — Origin and End
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Chief Options Strategist
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