We have two patterns with the same names for our trades, but they have formed in different ways.
In the video below, I explain the differences between the two of them. Hope this helps!
The Bullish +123 Continuation Pattern
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Below is a daily chart of The Allstate Corporation (ALL).
Trade: Over $98.21, consider shorting Nov (11/10) $97.5/95 bull put spread (5 DTE) for mid-point but a limit of $.55/share (closed at $.62/share). ROI 28% if expires worthless.
Technical Setup: Bullish +123 Continuation after Pro Gap Breakout from consolidation daily and weekly.
Option Strategy: Bull Put Credit Spread (BPS).
Stop Loss: $96.45.
Below is a daily chart of E*TRADE Financial Corporation (ETFC).
Trade: Over $44.08, consider shorting Nov (11/10) $43/42 bull put spread (5 DTE) for a limit of $.11/share (closed at $.13/share). ROI 12% if expires worthless.
Technical Setup: Bullish +123 Continuation from consolidation daily after Breakdown Failure, bullish weekly and monthly.
Option Strategy: Bull Put Credit Spread (BPS).
Stop Loss: $43.18.
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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.
