Below is a daily chart of Windstream Holdings, Inc. (WIN), $7.99:
Trade: We recommend buying the stock at a limit of $7.90 (since the hourly chart is extended).
Strategy: Bullish Wide Range Bar (+WRB) Breakout on daily and weekly charts.
Target: $8.75.
Stop Loss: $7.54.
Below is a daily chart of Amazon.com, Inc. (AMZN), $793.16:
Trade: We recommend selling 10 Jan $760/740 bull put spread (9 DTE) for a net credit of $900 or better provided AMZN trades over $794. NOTE: With this bullish setup, once the broader markets (which have been neutral) show more strength, we will consider a more bullish trade on AMZN such as an in-the-money bull call spread.
Strategy: Bullish consolidation following two Wide Range Bar (+WRB) Igniting bars from base, with bullish weekly and monthly.
Max Gain: $900 credit received.
Max Loss: $19,100 ($20 credit spread less credit received), but will be less with stop posted.
Breakeven: $759.10.
Stop Loss: $758.82.
Adjustments and Comments on Open Trades
SHOP – Shorted 10 Jan $45/40 bull put spread for a net debit of $700. Had nice move and mid-point to close now is $30/share which is greater than 50% of maximum profit in a short time. You can either take the $400 quick gains or tighten stop to $46.98.
FSLR – Yesterday we closed the entire position (covered call and short bear call spread) booking $1,500+ profit. We also provided you with a detailed recording discussing our analysis and trade management. We also thought you would find helpful the following lesson showing the ongoing calculation of the cost basis using an accounting T-chart.
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 and Pristine Founder
Dan Gibby
Chief Option Strategist
Follow Greg on Twitter and StockTwits to get real-time updates:
Twitter: @GregCapra
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