New Option Income Trading Ideas for Week 9-17-18

mastertrader.com/new-option-income-trading-ideas-for-week-9-17-18

Dan Gibby September 16, 2018

100% Closing Rate on Last Week's 6 Credit Spreads

See video below in Open and Closed Trades (which includes lesson on the UTX Iron
Condor)

NEW OPTION TRADING IDEAS

Below is a daily chart of SPDR S&P 500 ETF (SPY).

Trade: Over $291.27, consider shorting Sep (9/21) $289.5/284.5 bull put credit spread (5
DTE) for a limit of $.70/share (closed at $.83/share).

Technical Setup: Breakout from 2-day consolidation and Bottoming Tail after gap breakout
from Buy Setup on Support and r20-MA daily, bullish and monthly.

Option Strategy: Bull Put Credit Spread (BPCS).

Stop Loss: $289.88.

Below is a daily chart of SPDR Dow Jones Industrial Average ETF (DIA).

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Trade: Over $262.47 consider shorting Sep (9/21) $261/256 bull put credit spread (5 DTE) for
a limit of $.70/share (closed at $.83/share).

Technical Setup: Bullish 2-day consolidation and Bottoming Tail after Breakout daily and
weekly, bullish monthly.

Option Strategy: Bull Put Credit Spread (BPCS).

Stop Loss: $260.98.

Below is a daily chart of PowerShares QQQ ETF (QQQ).

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Trade: Over $184.95, consider shorting Sep (9/21) $183/178 bull put credit spread (5 DTE) for
a limit of $.60/share (closed at $.72/share).

Technical Setup: Breakout from 3-day consolidation after breakout from Buy Setup on
Support and r50-MA daily, bullish and monthly.

Option Strategy: Bull Put Credit Spread (BPCS).

Stop Loss: $183.18.

Below is a daily chart of The Home Depot, Inc. (HD).

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Trade: Over $210.53, consider shorting Sep (9/21) $207.5/202.5 bull put credit spread (5
DTE) for mid-point (closed at $.92/share).

Technical Setup: Master Trader Buy Setup and Bottoming Tail after bullish breakout in
strong up trend daily chart, bullish weekly and monthly.

Option Strategy: Bull Put Credit Spread (BPCS).

Stop Loss: $207.48.

Below is a daily chart of Automatic Data Processing, Inc. (ADP).

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Trade: Over $147.94, consider shorting Sep (9/21) $146/142 bull put credit spread (5 DTE) for
a limit of $.40/share (closed at $.52/share).

Technical Setup: Breakout from bullish multi-week above r20/50-MA daily, with bullish
weekly and monthly.

Option Strategy: Bull Put Credit Spread (BPCS).

Stop Loss: $146.48.

Below is a daily chart of Kimberly-Clark Corporation (KMB).

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Trade: Over $116.50, consider shorting Sep (9/21) $115/112 bull put credit spread (5 DTE) for
a limit of $.32/share (closed at $.40/share).

Technical Setup: Breakout from bullish consolidation at 20-MA daily, Master Trader Buy
Setup with Bottoming Tail on the weekly.

Option Strategy: Bull Put Credit Spread (BPCS).

Stop Loss: $114.90.

OPEN AND CLOSED TRADES AND ADJUSTMENTS, AND COMMENTS ON NEW

INDEX ETF TRADES

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 https://youtu.be/Ia_Fyr5faIk

100% Closing Rate on Last Week's 6 Credit Spreads (see above video)
9/10: AAPL – Shorted Sep (9/14) $212.5/202.5 bull put credit spread for $.78/share. Closed
at $.05/share for 94% Max Gain in 3 days.

9/10: GD – Shorted Sep (9/14) $192.5/187.5 bull put credit spread for $.42/share. Expired
worthless for 100% Max Gain in 4 days.

9/6: HD – Shorted Sep (9/14) $202.5/197.5 bull put credit spread for $.43/share. Closed at
$.05/share for 88% Max Gain in 3 days.

9/5: MO – Shorted Sep (9/14) $59/56 bull put credit spread for $.44/share. Closed at
$.04/share for 91% Max Gain in 4 days.

9/7: QQQ – Shorted Sep (9/14) $178/172 bull put credit spread for $.62/share. Closed at
$.03/share for 95% Max Gain in 5 days.

9/12: SPY – Shorted Sep (9/21) $287/280 bull put credit spread for $.82/share. Closed at
$.10/share for 88% Max Gain in 2 days.

Because your success is vital to you – and us.

Before selling options or credit spreads, we urge you to review the valuable and detailed
information that we have provided for you in your Member’s Area.

You will find it by scrolling to the bottom of the page to Mastertrader Subscriber Resources.

The link is Money Management Considerations When Selling Option Credit Spreads for Income.

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It explains Master Trader Money Management, Trade Management, understanding the use
of Contingent Orders, and much more.

If You’re in a Rush to Start

A quick simplified approach to calculating contract size is to simply base your contract size
based on the number of shares permitted in your Trading Plan as if you were trading the
stock or ETF.

The amount of money that you are willing to risk – divided by – the stop loss amount. For
example, $100 / .20 = 500 shares

Credit Spread example, if your Trading Plan allowed you to trade 543 shares of AAPL based
on the stop loss, then simply round down to the nearest hundred and short an equivalent
number of contracts of the option.

Since 1 contract represents 100 shares of the underlying, this would be five (5) contracts.

Thank you for being a loyal subscriber and feel to email us with any questions or comments
on anything.

Learn how Master Trader Technical Strategies – MTS with Credit Spreads can make
consistent money

Click Here – to Access the Program that puts you on the Master Trader Income Path.

Master Trader and You Building Your Financial Future Together

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
Trading the Pristine Method — Origin and End

Dan Gibby
Chief Options Strategist

Follow Greg on Twitter, YouTube, and StockTwits

Twitter: @GregCapra
Stocktwits: Greg_Capra

youtube.com/c/mastertrader

NOTE: Master Trader will show opening and closing prices of all stock and options trades.
We recommend that all traders and investors use proper share sizing for positions and
money management. However, we cannot recommend what that is for your particular
trading style, risk tolerance, or account balance.
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We urge you to calculate your own share/position size based on your individualized risk
parameters, Trading Plan, and familiarity with the proposed trade strategy and
risk. Advanced Management Strategies (AMS) covers in detail foundational and advanced
position and money management.

NOTE: Master Trader and its representatives may have existing positions in actual or other
trade recommendations before or after suggested herein. Additionally, we may manage
them differently for internal purposes based on different risk parameters than noted herein.

All trade ideas and content are for informational and educational purposes only. It is not, nor
is it intended to be, trading or investment advice or a recommendation that any security,
option or investment strategy is suitable for any person. Trading securities can involve high
risk and the loss of any funds. Investment or trading information provided may not be
appropriate for all investors, and is provided without respect to individual financial
sophistication, financial situation, investing time horizon or risk tolerance. Supporting
documentation for any claims (including claims made on behalf of options programs),
comparison, statistics, or other technical data, if applicable, will be supplied upon request.
Master Trader Consulting, Inc. is not a licensed financial advisor, registered investment
advisor, or a registered broker-dealer. Options, futures and futures options are not suitable
for all investors. Prior to trading securities products, please read the Characteristics and
Risks of Standardize Options and the Risk Disclosure for Futures and Options found
here: CLICK HERE.

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