Below is a daily chart of Cimarex Energy Co. (XEC).
Trade: Consider shorting Oct (10/20) $100/90 bull put spread (36 DTE) for a limit of $1.10/share (currently $1.07/share but extended intra-day and spready).
Technical Setup: Bullish Wide Range Bar (+WRB) Breakout daily and weekly chart.
Option Strategy: Bull Put Credit Spread (BPS).
Stop Loss: $99.88.
Below is a daily chart of Apache Corporation (APA).
Trade: Consider shorting Oct (10/13) $39.5/36.5 bull put spread (29 DTE) for a limit of $.40/share (closed at $.36/share but extended intra-day).
Technical Setup: Bullish Wide Range Bar (+WRB) Breakout daily after higher high and higher low.
Option Strategy: Bull Put Credit Spread (BPS).
Stop Loss: $39.98.
Below is a daily chart of Devon Energy Corporation (DVN).
Trade: Over $33.52, consider shorting Oct (10/20) $32/29 bull put spread (36 DTE) for a limit of $50/share (closed at $.52/share).
Technical Setup: Bullish Wide Range Bar (+WRB) Breakout from daily consolidation.
Option Strategy: Bull Put Credit Spread (BPS).
Stop Loss: $31.98.
Below is a monthly chart of Newfield Exploration Company (NFX).
Trade: Over $26.93 (hourly tail), consider shorting the following: (a) Oct (10/20) $25 naked puts (36 DTE) for a limit of $.46/share (closed at $.45 x $.50/share), or (b) Dec (12/15) $23/19 bull put spread (92 DTE) for a limit of $.52/share (closing mid-point). Note: Earnings 10/31, but will hold for trade (b).
Technical Setup: Breakout daily, and Buy Setup with Bottoming Tails on Major Support monthly (for longer term trade).
Option Strategy: Short Naked Puts (SP).
Stop Loss: $24.74.
Below is a daily chart of Pioneer Natural Resources Company (PXD).
Trade: Consider shorting Oct (10/13) $ naked puts (29 DTE) for a limit of $1.35/share (closed at $1.25 x $1.45/share). Stop Loss: $129.38.
Technical Setup: Bullish Wide Range Bar (+WRB) Breakout from daily consolidation.
Option Strategy: Short Naked Puts (SP).
Stop Loss: $129.38.
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.
NOTE: 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 in the Master Trader Option Strategies Series for Investors and Active Traders to generate wealth and income.
Description of Master Trader Directional and Income Option Trades can be seen HERE
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
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NOTE: Master Trader will show opening and closing prices of all stock and option trades. We do not recommend 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 strategy and risk.
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.
