Yesterday was extremely choppy so we remained cautious, waiting more data.  Earnings season (and the neutral internals) can do that.

The markets closed strong yesterday and look poised to resume their strength with today's pre-market bullish gaps from earnings.

 

Below is a daily chart of Adobe Systems Incorporated (ADBE).

 

 

Trade:  Over $260.14, consider shorting the Jul (7/27) $255/250 bull put credit spread (3 DTE) for mid-point but a limit of $.48/share (closed at $.57/share).

Technical Setup:   Breakout to all-time highs from bullish consolidation in the top range of a +WRB/engulfing reversal bar above the r20/50-MA on the daily.

Option Strategy:   Bull Put Credit Spread (BPCS).

Stop Loss:  None for now, will roll if necessary.

 

 

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 Access Mastering Advanced Credit Spreads Course here, it's the best $397 dollars spent to Master credit spread trading fast.

 

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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

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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.

 

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