We have another income trade recommendation that we believe will pay off handsomely in this letter.  Over the last two weeks of your trial to The Master Trader Weekly Options Income Trader, our trades were 100% profitable. Our four low-risk, high-odds setups earned a total of $1020 dollars with 10 contracts per trade. Details of each are below.

Continue earning and learning to earn with Weekly Options Trader here.

The trades if taken during the trial, would pay for 2-years of the Master Trader Weekly Traders!

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Here is our next weekly options income trade. It is a bearish view on a stock that was unable to rally on a week where the broader markets did and reached an area of price resistance.

Master Trader Tip: Stocks that cannot rally when the broader markets do have shown relative weakness — and are very likely to fall when the markets retrace.

 

Below is a daily chart of The Walt Disney Company (DIS), $101.50.

 

Trade:   Under $100.00, consider shorting Sep (9/8) $102/105 bear call spread (5 DTE) for mid-point (closed at $.45/share).

Technical Setup:   Bearish 1-2-3 consolidation after Bearish Pro Gap below price support, key moving averages and bearish consolidation on the daily chart. The weekly time frame (not shown) also suggests lower prices.

Option Strategy:   Bear Call Credit Spread (BCS).

Stop Loss:  $102.02. Above this level the strategy is working, so we close the trade.

 

Closed Trades

8/21/17: AAPL – Shorted Aug (8/25) $162.5/170 bear call spread for $.30/share. Expired worthless for full profit.  Using a 10-lot, this was a $300 gain.

8/23/17:  SPY – Shorted Sep (9/1) $246/248 bear call spread for $.60/share.  Stopped at $.35/share for $.25/share gain (42% of Max Profit).  Using a 10-lot, this was a $250 gain.

8/28/17:  NOW – Sold Sep (9/1) $115 naked calls and Sep (9/1) $105 naked puts for $.60/share.   Was Stopped breakeven.

8/30/17:  NFLX – Shorted Sep (9/8) $165/155 bull put spread for $.62/share.  Closed at $.15/share for $.47/share gain (76% of Max Gain).  Using a 10-lot, this was a $470 gain.

 

Sign up for the Master Trader Weekly Options Trader 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 options 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.