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Proactive Spreads, June 12th 2017 – CRM GOOGL

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We are undergoing a massive rotation right now.

Tech stocks are getting blown up. On Friday, there was a mini-flash crash in AMZN and a few other stocks. There were a couple areas that got hit early, then the profit taking came on pretty aggressively. Honestly, it felt like a tech fund was being liquidated.

I expect continued volatility in the tech space, but right now it isn’t spilling over anywhere else. Financials are still looking good, and small cap stocks are set to breakout.

Trade #1: GOOGL

Looking for a pull into earnings support, along with the rising 50 day moving average.

Trade Setup

Expected Price:930

Sell to Open GOOGL Jul 860/855 Put Spread

Tier 1: Open at .80, Close at 0.30

Tier 2: Open at 1.10, Close at 0.80

Tier 3: Open at 1.40, Close at 1.10

Trade #2: CRM

Looking for a pull into major pivot levels in the low 80’s.

Trade Setup

Expected Price: 82.50

Sell to Open CRM Jul 77.50/75 Put Spread

Tier 1: Open at 0.35, close at 0.15

Tier 2: Open at 0.50, Close at 0.35

Tier 3: Open at 0.65, Close at 0.50

Disclaimer

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