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Proactive Spreads, June 5th 2017 – MA, FDX

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New highs across the board on the major indexes. Our previous “line in the sand” from around 2350 is now moved up to 2400.

This is an incredibly strong market. If we do manage to correct, it will be most likely through time and rotational in nature. There are some areas where picking up some short exposure makes sense, just make sure to really pick your spots so you don’t get runover.

Trade #1: MA

The stock is up 7.5% in a 10 day period, which doesn’t happen often into range extensions. Expect this to correct and consolidate.

Trade Setup

Expected Price: 127

Sell to Open MA Jul 130/135 Call Spread

Tier 1: Open at 0.70, Close at 0.20

Tier 2: Open at 1.00, Close at 0.70

Tier 3: Open at 1.30, Close at 1.00

Trade #2: FDX

The stock has seen a multimonth breakout and I expect trend continuation here. We’ll run a stop just under the most recent support level.

Trade Setup

Expected Price: 203

Sell To Open FDX Jul 185/180 Put Spread

Tier 1: Open at 0.57, Close at 0.27

Tier 2: Open at 0.77, Close at 0.57

Tier 3: Open at 1.07, Close at 0.77

Stop Out on a close under 185

Disclaimer

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