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Full Time Profits, March 16th 2017 – AMZN

March 16, 2017 By Steven Place

So far, current price action is a small correction in the context of an intermediate term rally.

The S&P 500 had an exhaustion gap and spent nealry a week pulling back as the 20 day moving average caught up. Key levels were held and other than a few signs of weakness in oil and high yield debt, there really hasn’t been much in terms of true signs of a deeper correction.

The Fed came out on Wednesday and did their rate hike. This was expected, anticipated, and a little bit priced in. Fed fund futures were at a 95% chance of this happening, so nobody should be shocked.

We’re now coming into a point where I feel like new trades are going to be a little more “forced.” After all, spread selling works best when volatility is running hot, and we’re in a market where vol just isn’t there. Many stocks have undergone time-based corrections rather than finding any sellers.

To compensate for this, I’m going to do a few things. First, I will go after spreads that have a higher credit. Second, I will use price-based stops. Third, I will not have a tier 3 on the trade. These modifications will still allow participation in this market without having a ton of risk out there.

Trade #1: AMZN

The stock has been compressing near its all time highs. The chance for it to have a deeper pullback is probably over without it running first.

Trade Setup

Expected Price: 854

Sell To Open AMZN May 810/805 Put Spread

Tier 1: Enter at 1.25, Exit at 0.55

Tier 2: Enter at 1.65, Exit at 1.25

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

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