The markets are now short term overbought. The S&P 500 is up 2.7% in the past 2 weeks, while the Nasdaq is up over 5.7%. These are rallies that rarely see continuation without sideways action.
Odds are, just like all the other “pullbacks” this year, any correction will be sideways and rotational in nature. Which is great for us.
Trade #1: FDX
Looking for a pull into previous support and a rising 50 day moving average. Current trade will be in August, but if we don’t get a fill in the next few days, we’ll adjust the trade to September options.
Expected Price: 207
Sell To Open FDX Aug 200/195 Put Spread
Tier 1: Open at 0.60, Close at 0.10
Tier 2: Open at 0.90, Close at 0.60
Tier 3: Open at 1.20, Close at 0.90
Trade #2: JPM
Pullback to breakout setup. Look for the move sub 90 to start putting on long exposure.
Expected Price: 89
Sell to Open JPM Sep 85/82.50 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