Below is a daily chart of Intercontinental Exchange, Inc. (ICE).
Trade: Over $71.37, consider shorting Jan (1/19) $70/65 Bull Put Credit Spread (37 DTE) for midpoint but limit of $.80/share (currently $.85/share).
Technical Setup: Master Trader Buy Setup, Bottoming Tail, bullish reversal above r20-MA daily, and bullish weekly and monthly.
Option Strategy: Bull Put Credit Spread (BPS). Note: After FOMC, we will look for a bullish directional trade if stock and market hold up.
Stop Loss: None now.
Below is a daily chart of Expeditors International of Washington, Inc. (EXPD).
Trade: Over $64.60, consider buying stock.
Technical Setup: Bullish consolidation following +WRB Breakout above r20-MA daily, and bullish weekly and monthly.
Stop Loss: $63.68.
Below is a daily chart of Merck & Co., Inc. (MRK).
Trade: Consider shorting Jan (1/19) $55/50 Bull Put Credit Spread (37 DTE) for a limit of $.52/share (currently $.48/share but extended).
Technical Setup: Bottoming pattern, time decay strategy daily after oversold sell off.
Option Strategy: Bull Put Credit Spread (BPS).
Stop Loss: $54.65.
Below is a weekly chart of General Dynamics Corporation (GD).
Trade: Provided it does not open over $197, under 5-Min. low, consider shorting Jan (1/19) $205/215 bear call credit spread (37 DTE) for around closing mid-point of $.77/share or better.
Trade #2: Under $196, consider buying Jan (1/19) $205/185 bear put debit spread (37 DTE) for $9.00/share or better (no time value). This is a bearish directional trade, higher reward-risk.
Technical Setup: Breakdown after Breakout Failure weekly, downtrend daily and bear gap breakdown yesterday, and extended monthly.
Option Strategy: Bear Call Credit Spread (BCS); Bear Put Debit Spread (BPS).
Stop Loss: None now.
Below is a daily chart of Huntington Ingalls Industries, Inc. (HII).
Trade: Under $232.60, consider selling Jan (1/19) $250/260 bear call credit spread (37 DTE) for around $.60/share (closed at $.60/share but spready).
Technical Setup: Breakdown from huge Head and Shoulders daily and weekly, Climactic Sell Setup monthly.
Option Strategy: Bear Call Credit Spread (BCS).
Stop Loss: $246.22.
Below is a daily chart of Fifth Third Bancorp (FITB).
Trade: Over $30.73, consider shorting Jan (1/19) $29/28 Bull Put Credit Spread (37 DTE) for a limit of $.28/share (currently $.28/share but spready).
Technical Setup: Master Trader Buy Setup and Bottoming Tail above r20-MA daily, and bullish weekly and monthly.
Option Strategy: Bull Put Credit Spread (BPS).
Stop Loss: None now.
Miscellaneous Member Documents and Reminders:
Adjustments and Comments on Open and Closed trades in Master Trader’s Market Edge Advisory Letter. Note: Our Trade Updates are timely posted in a separate Report in the Member’s Area. Please CLICK HERE to 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.
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
Please Sign Up for Text Alert Service for Timely Trade Updates!
As a subscriber to the Master Trader’s Market Edge Advisory Letter, we would like to text you alerts for timely new trade opportunities and/or updates to open positions.
We are going to discontinue using the current text service and replace it with WhatsApp, which will allow our many subscribers all over the world to receive these alerts.
Please download the app on your phone if you want to take advantage of this service. You can read about the product at https://www.whatsapp.com/
Once downloaded, CLICK HERE to get the invitation to the “MasterTrader Advisory” Group. PLEASE DO NOT TEXT REPLIES HERE AS IT BROADCASTS TO ALL SUBSCRIBERS (instead, kindly e-mail dan@mastertrader with questions).
Our Trade Updates are timely posted in a separate Report in the Member’s Area. Please CLICK HERE to see that document for a current reflection on all Open and Closed Trades and adjustments since the spreadsheet updates immediately.
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.
