Below is a daily chart of Air Products and Chemicals, Inc. (APD).
Trade: Over $151.00, consider shorting Oct (10/20) $145/135 bull put spread (31 DTE) for a limit of $.60/share (closed at $.62/share).
Technical Setup: Continuation Breakout all time frames.
Option Strategy: Bull Put Credit Spread (BPS).
Stop Loss: $145.88.
Below is a daily chart of Energy Select Sector SPDR ETF (XLE).
Trade: Under $65.64, consider shorting Oct (10/20) $67/69 bear call spread (31 DTE) for mid-point (closed at $.41/share).
Technical Setup: Bearish Gap from rally to Major Resistance daily chart.
Option Strategy: Bear Call Credit Spread (BCS).
Stop Loss: $67.12.
Below is a daily chart of Teradyne, Inc. (TER).
Trade: Under $35.42, consider shorting Oct (10/20) $37/40 bear call spread (31 DTE) for mid-point of $.46 or better (closed at $.52/share).
Technical Setup: Failed Breakout at Major Resistance daily chart, negating Friday’s Bullish Wide Range Bar.
Option Strategy: Bear Call Credit Spread (BCS).
Stop Loss: $37.02.
Below is a daily chart of Potash (POT).
Trade: Consider buying the stock between $18.50 – 18.85 since is extended on the daily chart.
Technical Setup: Breakout daily, and bullish multi-year consolidation on the monthly, plus sector strong.
Target: $27 – 30 as a core trade on the monthly chart as shown. Note: We will be holding through earnings and using covered calls to generate monthly income.
Stop Loss: $15.88.
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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Twitter: @GregCapra
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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.
