Below is a daily chart of American Airlines Group Inc. (AAL).

 

 

Trade:  Over $33.01, consider shorting Nov (11/2) $31/27 bull put credit spread (5 DTE) for mid-point but limit of $.35/share (closed at $.42/share).

Technical Setup:  Bullish W-Bottom after Breakdown Failure on the daily, short-term income trade.

Option Strategy:   Bull Put Credit Spread (BPCS).

Stop Loss:  $31.08.

 

Below is a daily chart of American Eagle Outfitters, Inc. (AEO).

 

 

Trade:  Over $23.11, consider shorting Nov (11/2) $21.5/17 bull put credit spread (5 DTE) for mid-point but limit of $.38/share (closed at $.45/share).

Technical Setup:   Breakout from W-Formation from bullish consolidation on the daily chart, +WRB on Support and r50-MA on the weekly, relative strength to markets last week.

Option Strategy:   Bull Put Credit Spread (BPCS).

Stop Loss:  $20.98.

 

 

WATCH ITEMS:

Below is a daily chart of Chipotle Mexican Grill, Inc. (CMG).

 

 

Trade IDEA ONLY:  Over $441.78 is a bullish setup for selling an OTM bull put credit spread; however, the options are too illiquid to make an official recommendation.

Technical Setup:  Bullish Gap on earnings and Range Expansion Breakout after Breakdown Failure above the r200-MA on the daily, oversold and Bottoming Tail above the r50-MA weekly.

 

Below is a daily/weekly chart of Frontline Ltd. (FRO).

 

Breakout all time frames, we will be watching for bullish option strategies.

 

Below is a daily chart of Zillow Group, Inc. (Z).

 

 

Continuation Breakdown daily, we will be watching for bearish option strategies.

 

Below is a daily/weekly chart of Redfin Corporation (RDFN).

 

 

Continuation Breakdown daily, we will be watching for bearish option strategies.

 

Below is a daily chart of Dropbox, Inc. (DBX).

 

 

Continuation Breakdown daily/weekly, we will be watching for bearish option strategies.

Below is a daily/weekly chart of Facebook, Inc. (FB).

 

 

Breakdown all time frames but it has earnings 10/30 so we will be looking to sell credit spreads based on a compelling setup if occurs on the earnings gap.

 

VIDEO ON OPEN TRADES AND ADJUSTMENTS

 

 

 

Change your Trading and Your Financial Future Forever!

In different letters, we talk about our Advanced Money Management Strategies course. 

This course can change your trading tremendously and I’m going to offer to you — for FREE — with the purchase of the Swing Trading Strategies course.

Either of these courses can change your financial future. Take this no-brainer opportunity to take the two of them for the price of one!

Once you have purchased the Swing Trading Strategies course, email greg@mastertrader.com and you will be provided with access to the Position and Money Management course for FREE.

 

Full Options Investing and Trading Series Course

Instant lifetime access to the course here, a month of the Live Trading Green Room and Advisory Letter.

This Seminar will teach you to find low-risk, high-odds options opportunities.

It does not take a lot of time – when you know what to look for.  After the class, you will have no doubt what that is and how to capitalize on it.

And the class is followed up with group coaching sessions for Life where will review it all!

Specials end after October 31st

 

 

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

 

Please read the information on Money Management below

 

Learn how Master Trader Technical Strategies – MTS and MTS with Options Strategies can make consistent money.

 

Click Here – to Access the Options Credit Spread Program that puts you on the Master Trader Income Path.

 

Click Here to Learn The Master Trader Swing Trading Strategies to profits over a few days to weeks.

 

CLICK HERE For a free 3-day complimentary access to the Master Trader Green Room

 

In the Master Trader Green Room, we trade stocks, options, and ETFs in real-time.

Learn how we scan pre-market compelling Gap Trades and discuss a “plan of attack” to profit.

 

 

Because your success is vital to you – and us.

 

Before selling options or credit spreads, we urge you to review the valuable and detailed information that we have provided for you in your Member’s Area.

 

You will find it by scrolling to the bottom of the page to Master Trader Subscriber Resources.

 

The link is Money Management Considerations When Selling Option Credit Spreads for Income.

 

It explains Master Trader Money Management, Trade Management, understanding the use of Contingent Orders, and much more.

 

If You’re in a Rush to Start

 

A quick simplified approach to calculating contract size is to simply base your contract size based on the number of shares permitted in your Trading Plan as if you were trading the stock or ETF.

 

Simple Share Sizing = $ Risk / Stop Loss

 

The amount of money that you are willing to risk – divided by – the stop loss amount. For example, $100 / .20 = 500 shares.

 

Credit Spread example, if your Trading Plan allowed you to trade 543 shares of AAPL based on the stop loss, then simply round down to the nearest hundred and short an equivalent number of contracts of the option.

 

Since 1 contract represents 100 shares of the underlying, this would be five (5) contracts.

 

 

Master Trader and You Building Your Financial Future Together!

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
Trading the Pristine Method — Origin and End

 

Dan Gibby
Chief Options Strategist

 

Follow Greg on Twitter, YouTube, and StockTwits

 

Twitter: @GregCapra
Stocktwits: Greg_Capra    

 youtube.com/c/mastertrader

 

NOTE:  Master Trader will show opening and closing prices of all stock and options trades.  We recommend that all traders and investors use proper share sizing for positions and money management. However, we cannot recommend what that is for your particular trading style, risk tolerance, or account balance.

We urge you to calculate your own share/position size based on your individualized risk parameters, Trading Plan, and familiarity with the proposed trade strategy and risk. Advanced Management Strategies (AMS) covers in detail foundational and advanced position and money management.

 

NOTE:  Master Trader and its representatives may have existing positions in actual or other trade recommendations before or after suggested herein.  Additionally, we may manage them differently for internal purposes based on different risk parameters than noted herein.

All trade ideas and content are for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, option or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds.  Investment or trading information provided may not be appropriate for all investors, and is provided without respect to individual financial sophistication, financial situation, investing time horizon or risk tolerance. Supporting documentation for any claims (including claims made on behalf of options programs), comparison, statistics, or other technical data, if applicable, will be supplied upon request.  Master Trader Consulting, Inc. is not a licensed financial advisor, registered investment advisor, or a registered broker-dealer. Options, futures and futures options are not suitable for all investors. Prior to trading securities products, please read the Characteristics and Risks of Standardize Options and the Risk Disclosure for Futures and Options found here:  CLICK HERE.