Below is a daily chart of SPDR S&P 500 ETF (SPY).
Trade: Over $250.32, consider buying Sep (9/29) $245 calls (8 DTE) for a limit of $5.53/share (which gives us high delta as a directional swing trade and paying no more than $.20/share time value).
Technical Setup: Breakout daily, strong uptrend weekly and monthly. Note: this is only a swing trade for us. If the bullish action has follow through, this will be a great swing trade. If this turns out to be a Bull Trap (false breakout), we will cut our losses and look for bearish setups.
Option Strategy: Long Calls (LC).
Stop Loss: $248.88.
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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.
