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Proactive Spreads, April 27th 2017 - NFLX, V

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"Markets rallied on French election outcome."

Think about it... how absurd does that really sound?

Earnings are the important thing here. While some of the large tech names haven't reported yet, they are rallying hard into those earnings events.

That, combined with a flush in bonds, is helping support the markets right now. Until we see a loss of 2370, we need to assume the overall trend will continue.

The best setups I see are relative strength stocks trading near highs.

Trade #1 NFLX

Trade Setup 

Expected Price: 151

Sell To Open NFLX Jun 140/135 Put Spread

Tier 1: Open at 0.70, Close at 0.20

Tier 2: Open at 1.20, Close at 0.70

No Tier 3

Stop Out On Close Under 135

Trade #2: V

Trade Setup

Expected Price: 90

Sell To Open V Jun 87.50/85 Put Spread

Tier 1: Open at 0.40, Close at 0.10

Tier 2: Open at 0.65, Close at 0.409

No Tier 3

Stop Out On Close Under  87.50

Disclaimer

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