• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

IWO Trading Floor

Become a Great Options Trader

  • Customer Center

Full Time Profits, February 6th 2017 AMZN, FB

February 6, 2017 By Steven Place

spx-2015

We’re going to start off today with a look at some historical price action.

This chart shows us how the S&P 500 traded for the first 8 months of 2015.

No trend, all reversion. Buyers didn’t really show up… neither did sellers.

This is what we call “normal” in the markets. Periods of low volatility followed (eventually) by some very strong price movement.

And while I think we trade higher from here… it’s not going to be a ripper higher.

The one thing that this chart doesn’t show…

Was how during the entire year in 2015, there was a massive bear market underneath the surface in oil. The entire sector collapsed but you didn’t see it in the broad markets.

When correlations are this low, there’s still plenty of opportunities to be had out there.

Trade #1: AMZN

AMZN reported earnings and its revenue was light… this is leading to a gap down which potentially will take it to retest the previous resistance levels from November.

If we come into 790 then we want to start scaling into some put spreads.

Trade Setup

Expected Price: 790

Sell to Open AMZN Apr 720/715 Put Spread

Tier 1: Enter at 0.75, Exit at 0.25

Tier 2: Enter at 1.05, Exit at 0.75

Tier 3: Enter at 1.35, Exit at 1.05

Trade #2: FB

Very similar structure as the AMZN trade. Disappointing reaction to earnings may bring in some more sellers and come in to retest previous support levels.

Trade Setup

Expected Price: 124

Sell to Open FB Apr 115/110 Put Spread

Tier 1: Enter at 0.80, Exit at 0.30

Tier 2: Enter at 1.10, Exit at 0.80

Tier 3: Enter at 1.40, Exit at 1.10

Disclaimer

U.S. GOVERNMENT REQUIRED DISCLAIMER – COMMODITY FUTURES TRADING COMMISSION. FUTURES AND OPTIONS TRADING HAS LARGE POTENTIAL REWARDS, BUT ALSO LARGE POTENTIAL RISK. YOU MUST BE AWARE OF THE RISKS AND BE WILLING TO ACCEPT THEM IN ORDER TO INVEST IN THE FUTURES AND OPTIONS MARKETS. DON’T TRADE WITH MONEY YOU CAN’T AFFORD TO LOSE. THIS WEBSITE IS NEITHER A SOLICITATION NOR AN OFFER TO BUY/SELL FUTURES OR OPTIONS. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED ON THIS WEBSITE. THE PAST PERFORMANCE OF ANY TRADING SYSTEM OR METHODOLOGY IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY, SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN

Primary Sidebar

© 2021 Global Profit Systems International