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Proactive Spreads, June 19th 2017 - BA, C

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Trend is still up, we've had a sideways correction. Odds are for a further grind higher.

Only weakness has been in large cap tech, and I think we have further room to fall there, but we've seen many times where the "dip" looks ready to come but never does. We've got setups ready to go in AAPL, NFLX, GOOGL, and BABA so keep an eye on those if we get confirmation of weakness.

Trade #1: BA

The stock is up 9% in a month, that is statistically overbought. Looking to scale into some call spreads on any further movement higher.

Trade Setup

Expected Price: 201

Sell to Open BA Aug 210/220 Call Spread

Tier 1: Open at 1.80, Close at 0.80

Tier 2: Open at 2.40, Close at 1.80

Tier 3: Open at 3.00, Close at 2.40

Trade #2: C

The stock has broken out from a large, multi-month range and has pulled back to test previous levels. This pullback appears to be a good entry point for bull put spreads.

Trade Setup

Expected Price: 64

Sell To Open BA Aug 60/57.50 Put Spread

Tier 1: Open at 0.35, Close at 0.10

Tier 2: Open at 0.50, Close at 0.35

Tier 3: Open at 0.65, Close at 0.50

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