Below is a daily chart of Splunk Inc. (SPLK), $60.28.
POTENTIAL Trade: On earnings, it is having a Pro Gap Breakout after market. Over 30-Min. high, consider shorting Sep (9/1) $60/55 bull put spread (7 DTE) for a limit of $.50/share. Note: Please check Open Trade Spreadsheet for any updates prior to entering.
Technical Setup: Breakout daily/weekly.
Option Strategy: Bull Put Credit Spread (BPS).
Stop Loss: $59.98.
Below is a MONTHLY chart of Perrigo Company plc (PRGO), $77.50.
Trade: Over $80.10, consider buying stock for a long-term core trade. Our intent will be to sell monthly calls against it to generate income and reduce cost basis.
Technical Setup: Bullish Pro Gap and Breakout daily and bullish 2-week consolidation, with trigger being the next breakout, Bullish +123 Consolidation on the weekly, with price void on the monthly after Bullish Bottoming Tail.
Stop Loss: $75.48.
Below is a daily chart of Rockwell Collins, Inc. (COL), $129.28.
Trade: Consider shorting Sep (9/15) $115/110 bull put spread (21 DTE) for a limit of $.40/share (closed at $.37/share).
Technical Setup: Pro Gap Breakout to new highs from bullish consolidation daily, strong uptrend all time frames.
Option Strategy: Bull Put Credit Spread (note: to replace Short Naked Put trade which didn’t trigger 8/23).
Stop Loss: $118.38.
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.
