Archives for September 2017
Full Time Profits, September 28th, 2017 – AMZN, CAT, NFLX
It has been a tale of two tapes.
First, take a look at the S&P 500 chart above. This is the lowest volatility recorded. Ever. Sideways action, barely any movement.
Yet if you look at the energy sector (XLE), it’s been on a massive tear.
If you look at some of the large cap tech stocks, they been hammered on a pre-earnings shakeout.
And then you have the Russel 2000 Index. Which just had a massive move after it has already broken out.
This market correction is time-based and rotational. And boy, is that some rotation.
Trade #1: AMZN
After a failed breakout over 1,000, AMZN continues to trade at the lower end of its range. When a support level is tested multiple times in a short period, odds are we see a breakdown. I’m looking for 910-900 to act as the magnet and next support level.
Trade Setup
Expected Price: 910
Sell to Open AMZN Nov 840/835 Put SpreadĀ
Tier 1: Enter at 0.80, Close at 0.20
Tier 2: Enter at 1.10, Close at 0.40
Hold off on Tier 3 as we may need to roll before earnings.
Trade #2: CAT
Simple bet here, looking for a pull into 120 to retest some prior pivot levels.
Trade Setup
Expected Price: 120
Sell to Open CAT Nov 110/105 Put Spread
Tier 1: Enter at 0.60, Close at 0.10
Tier 2: Enter at 0.90, Close at 0.30
Tier 3: Enter at 1.20, Close at 0.80
Trade #3: NFLX
Another tech stock that is weak– look for a test of recent range lows.
Trade Setup
Expected Price: 165
Sell To Open NFLX Nov 145/140 Put Spread
Tier 1: Enter at 0.80, Close at 0.20
Tier 2: Enter at 1.10, Close at 0.40
Hold off on Tier 3 as we may need to roll before earnings.
CLOSED – RUT Scaling Butterfly
UPDATE – September 28th 2017
UPDATE – October 4th 2017
UPDATE – October 13th 2017
UPDATE – November 6th
Taking small profits on this trade.
IncomeLab Capital Flow Model
[CLOSED] – New SPX Iron Condor – 17 Nov Expiration
Update – 9/29/17
Going to cut short exposure here.
Update – 10/4/17
Closing out the put spread, closing out the hedge, rolling the call spread higher.
Update – 10/11/17
Opening new put spread, buying the 30NOV17 Call to hedge.
Update – 10/20/17
Closing out the trade for a loss.
Update – 10/22/17
Post trade analysis on this iron condor trade.