IWO Trading Floor

Become a Great Options Trader

Proactive Spreads, July 27th 2017 – AMGN, GOOGL

By

S&P continues to make new highs, with low, grinding volatility. Not my favorite market to trade, I’d prefer some better volatility but we have to work with what we’ve got. We’re in the middle of earnings season so many of the best trades are going to be fading post-earnings reactions.

Trade #1: AMGN

AMGN is running hard on earnings to the downside. Initial support is at 170, although I think that breaks and we see an initial test of 167.50.

Trade Setup

Expected Price: 167.50

Sell to Open AMGN Sep 160/155 Put Spread

Tier 1: Enter at 0.65, Close at 0.15

Tier 2: Enter at 0.95, Close at 0.65

Tier 3: Enter at 1.25, Close at 0.95

Trade #2: GOOGL

GOOGL gapped down, and is finding some initial support, but I wan to wait for a second leg lower before I look at entries.

Trade Setup

Expected Price: 950

Sell to Open GOOGL 890/885 Put Spread

Tier 1: Enter at 0.65, Close at 0.15

Tier 2: Enter at 0.95, Close at 0.65

Tier 3: Enter at 1.25, Close at 0.95

Disclaimer

U.S. GOVERNMENT REQUIRED DISCLAIMER – COMMODITY FUTURES TRADING COMMISSION. FUTURES AND OPTIONS TRADING HAS LARGE POTENTIAL REWARDS, BUT ALSO LARGE POTENTIAL RISK. YOU MUST BE AWARE OF THE RISKS AND BE WILLING TO ACCEPT THEM IN ORDER TO INVEST IN THE FUTURES AND OPTIONS MARKETS. DON’T TRADE WITH MONEY YOU CAN’T AFFORD TO LOSE. THIS WEBSITE IS NEITHER A SOLICITATION NOR AN OFFER TO BUY/SELL FUTURES OR OPTIONS. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED ON THIS WEBSITE. THE PAST PERFORMANCE OF ANY TRADING SYSTEM OR METHODOLOGY IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY, SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN