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Proactive Spreads, June 29th 2017 – AAPL, GOOGL

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We’re starting off with a chart of the Nasdaq 100. After that nasty, high volume selloff earlier this month, the market has been quite weak. Failed gaps higher and lack of upside followthrough suggest distribution.

Now I’m not calling for the end of western finance here, just a bit more of a correction here. And I’ve been trying to be patient on this one, waiting for the stop runs and selling acceleration to take us sub 135. Into this selloff I want to start getting aggressive with tech stocks.

Trade #1: AAPL

We’ve already played the dip on this one with Jul credit spreads, but I want to look at a new trade in August if and when it cracks these recent lows. Key support is at 140, measured move down to 135.

Trade Setup

Expected Price: 137

Sell to Open AAPL Aug 130/125 Put Spread

Tier 1: Enter at 0.70, Exit at 0.20

Tier 2: Enter at 1.00, Exit at 0.70

Tier 3: Enter at 1.30, Exit at 1.00

Trade #2: GOOGL

Looking for this recent support to get lost, and a quick move to test those previous earnings levels.

Trade Setup

Expected Price: 925

Sell to Open GOOGL Aug 855/850 Put Spread

Tier 1: Enter at 1.00, Exit at 0.50

Tier 2: Enter at 1.5, Exit at 1.00

No Tier 3

Disclaimer

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