Below is a daily chart of Apple Inc. (AAPL), $162.91.
Trade: Over $163.12, consider buying Sep (9/15) $150 calls (16 DTE) and selling Sep (9/8) $167.5 calls (9 DTE) for mid-point (closed at $12.95/share).
Technical Setup: Breakout daily and weekly, strong uptrend monthly to new highs.
Option Strategy: Bull Call Diagonal (BCD).
Stop Loss: $160.78.
Below is a daily chart of Lockheed Martin Corporation (LMT), $308.17.
Trade: Over $308.20, consider shorting Sep (9/15) $300/290 bull put spread (16 DTE) for a limit of $1.15/share (closed at $1.22/share).
Technical Setup: Bullish Wide Range Bar (+WRB) from consolidation daily, strong uptrend weekly and monthly.
Option Strategy: Bull Put Credit Spread (BPS).
Return: 13% ROI in 16 days if expires worthless over $300 short strike ($1.15/$8.85).
Stop Loss: $302.48.
Below is a daily chart of Perrigo Company plc (PRGO), $77.65.
Trade: Over $78.50, consider shorting Sep (9/15) $75 naked puts (16 DTE) for a limit of $.70/share (closed at $.70 x 1.00/share). Note: Earnings 11/8, but we plan on holding.
Technical Setup: Bullish consolidation after Pro Gap daily and weekly, and bottoming pattern monthly.
Option Strategy: Short Naked Puts (SP).
Stop Loss: None. We like as a Core Long so will recommend Adjustment Strategies if triggers long and weakens.
Below is a daily chart of FedEx Corporation (FDX), $211.30.
Trade: Over $211.65, consider shorting Sep (9/8) $207.5/197.5 bull put spread (9 DTE) for mid-point (closed at $.84/share).
Technical Setup: Bullish Wide Range Bar (+WRB) from multi-week consolidation daily, strong uptrend weekly and monthly.
Option Strategy: Bull Put Credit Spread (BPS).
Stop Loss: $207.88.
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
Follow Greg on Twitter, YouTube, and StockTwits to get real-time updates and education:
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.
