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Proactive Spreads, August 28th, 2017 - QQQ, WYNN

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As it stands right now, the lows put in last week feel like "breadth exhaustion" in the near term.

The levels I'm going to key off of this week are simply the high and low of the distribution day from Aug 17th. If we break below 2430 then we'll head to 2400, if we manage to clear 2465 then we'll go test new highs. Between that is, at least to me, statistical noise.

Trade #1: QQQ

If the Nasdaq does manage to see a lower low, I'm targeting the gap fill at 139.05 as a magnet and key support level.

Trade Setup

Expected Price: 139.05

Sell to Open QQQ Oct 129/123 Put Spread

Tier 1: Enter at 0.50, Exit at 0.20

Tier 2: Enter at 0.70, Exit at 0.50

Tier 3: Enter at 0.90, Exit at 0.70

Trade #2: WYNN

The stock is testing range highs on volume and volatility expansion, and is currently undergoing a flag pattern. Odds are the range lows will hold, and we see trend continuation to the upside.

Trade Setup

Expected Price: 133.67

Sell to Open WYNN Oct 120/115 Put Spread

Tier 1: Enter at 0.60, Exit at 0.10

Tier 2: Enter at 0.90, Exit at 0.60

Tier 3: Enter at 1.20, Exit at 0.90

Disclaimer

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