Below is a daily chart of Wayfair Inc. (W).

 

Trade:  Over $81.06, consider shorting Jan (1/12) $75/70 Bull Put Credit Spread (5 DTE) for around closing mid-point of $.50/share.

Technical Setup:  Multiple Bottoming Tails after pull back from Bullish +WRB breakout at r20MA daily.

Option Strategy:   Bull Put Credit Spread (BPS).  107% Volatility makes for good credit spread trade.

Stop Loss:  $75.74.

 

Below is a daily chart of Lululemon Athletica Inc. (LULU).

 

Trade:  Provided it opens over $79.18 closing price, then over 10-Min. high, consider shorting Jan (1/12) $77/72 Bull Put Credit Spread (5 DTE) for mid-point but minimum of $.70/share (closed at $.86/share).

Technical Setup:   Bullish consolidation with failed attempts to break down, showing strength daily.

Option Strategy:   Bull Put Credit Spread (BPS).

Stop Loss: None. If trades under $77.31, sell Jan (1/12) $81/86 Bear Call Credit Spread to leg into iron Condor.

 

Below is a daily chart of Dollar Tree, Inc. (DLTR).

 

Trade:  Over $111.23, consider shorting Jan (1/12) $110/105 Bull Put Credit Spread (5 DTE) for a minimum of $.55/share (closed at $.65/share).

Technical Setup:  Breakout after multi-week consolidation and Bottoming Tail at r20-MA daily.

Option Strategy:   Bull Put Credit Spread (BPS).

Stop Loss:  $109.88.

 

Note that we are long-term bullish on the oil sector because of the breakout on multiple time frames.  These are the ones we are watching in our Advisory Letter:  OIL SECTOR BULLISH WEEKLY CHARTS: XOP, OIH, XLE, XES, SLB, APA, HES, BHGE.  We have many bullish stock and option trades in that Letter on them, and are stalking them on pull backs.

Most are extended, making it difficult to enter long at this time.  However, one way to gain exposure is to take advantage of time decay from selling options.  So we are going to start posting some here where we can sell OTM puts/spreads, but we will give price improvement levels to hopefully get filled on pull backs.

Then, our strategy will at this time will be to not use stops.  If they close ITM at expiration, we will roll to the following week, gaining additional time decay income on bullish charts where retracements are not a huge concern.

 

Below is a daily chart of SPDR S&P Oil & Gas Explor & Prodtn ETF (XOP).

 

Trade:  Consider shorting Jan (1/12) $38 naked puts (5 DTE) for a limit of $.30/share (closed at $.26 x .29 but extended daily), giving cost basis of $37.70 if assigned.

Technical Setup:   Breakout daily/weekly/monthly.

Option Strategy:   Short Naked Puts (SP).

Stop Loss:  None for now.

 

Note that we are long-term bullish on XLV and XPH.

Below is a weekly chart of Health Care Select Sector SPDR ETF (XLV).

 

Trade:  Consider shorting Jan (1/12) $84.5 naked puts (5 DTE) for a limit of $.35/share (closed at $.23 x .38 but extended daily).  Note: the $85 obviously gives higher premium (max profit) but less “cushion.”

Technical Setup:   Breakout daily/weekly/monthly.

Option Strategy:   Short Naked Puts (SP).

Stop Loss:  None for now.

 

Below is a daily chart of Sage Therapeutics, Inc. (SAGE).

 

Trade:  Over $170.00, consider shorting Jan (1/12) $150/145 Bull Put Credit Spread (5 DTE) for mid-point but minimum of $.90/share (closed at $1.05/share).   Note:  HIGH RISK because very spready and a biotech stock, trade accordingly.

Technical Setup:   Bullish consolidation into r20-MA after bullish gap and failed attempts to break down, showing strength daily, bullish consolidation weekly.

Option Strategy:   Bull Put Credit Spread (BPS).

Stop Loss: None. If trades under $153, sell Jan (1/12) $177.5/182.5 Bear Call Credit Spread to leg into iron Condor.

 

Miscellaneous Member Documents and Reminders:

Adjustments and Comments on Open and Closed trades in Master Trader’s Weekly Options Trader. Note: Our Trade Updates are timely posted in a separate Report in the Member's Area. Please CLICK HERE to 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.

Please see Master Trader Guidelines for Trading the Open and Gaps in Member’s Area for rules on trade entry, gaps, etc.

 

Below is a link to individual videos explaining in greater detail the definitions of the main option trading strategies used by Master Trader in its advisory letters to generate wealth and income.

Description of Master Trader Directional and Income Option Trades can be seen HERE

Please Sign Up for New WhatsApp Text Alert Service for Timely Trade Updates!

 

As a subscriber to the Master Trader’s Weekly Options Trader, we would like to text you alerts for timely new trade opportunities and/or updates to open positions.

WhatsApp will allow us to post more detailed alerts (without being constrained by character limits), and also allow our many subscribers all over the world to receive these alerts (and you when you are traveling).

Please download the app on your phone if you want to take advantage of this service.  You can read about the product at https://www.whatsapp.com/

Once downloaded, email Dan@mastertrader.com with your Name and Cell # to get the invitation to the “MasterTrader Weekly Opt” group.   This app allows us to text all around the world.  We reserve the right to ban anyone from the group for posting.

 

PLEASE DO NOT TEXT REPLIES HERE AS IT BROADCASTS TO ALL SUBSCRIBERS (instead, kindly e-mail dan@mastertrader with any questions).

Adjustments and Comments on Open and Closed trades in Master Trader’s Weekly Options Trader. Note: Our Trade Updates are timely posted in a separate Report in the Member's Area. Please CLICK HERE to 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.

 

Since you have enjoyed this Service, please review the following for more detailed education — and profits!

You can sign up for the Master Trader Monthly Advisory here. Our comprehensive Master Trader All-Inclusive Advisory Market Edge Membership includes the Advisory Letter — plus much more – in providing ongoing, invaluable trading information for active investors and traders. Check out what the amazing package includes.

To learn how to create Wealth and Generate Income using our simple Option Strategies, please see Master Trader Option Strategies Series for Investors and Active Traders.  Our unique approach is guaranteed to increase your ability to trade options with confidence with superior reward-risk that doesn’t take a lot of time.

 

Thank you for being a loyal subscriber and feel to email us with any questions or comments on anything.

 

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

Follow Greg on Twitter, YouTube, and StockTwits to get real-time updates and education:

Twitter: @GregCapra
Stocktwits: Greg_Capra    

 youtube.com/c/mastertrader (please subscribe to receive all the timely stock market updates)