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Proactive Spreads, September 21st, 2017 – AAPL, FB, TSLA

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Seems kinda boring, doesn’t it?

It’s not just you. The past 6 days was the tightest intraday ranges… ever.

The volatility from 2015 and 2016 seems like a decade ago. It’s truly amazing to watch.

Anyways… same gameplan as all year. Until proven otherwise, market corrections will be shallow and rotational.

Key resistance is that upper channel (yellow). And a proper failed breakout would occur if SPX broke under 2474.

Trade #1: AAPL

I’ve mentioned AAPL in previous newsletters, and I just wanted to provide an update. The level we are watching is 150, and for me, this is close enough to start working into a position.

Trade Setup

Expected Price: 154

Sell to Open AAPL Nov 140/135 Put Spread

Tier 1: Enter at 0.65, Close at 0.15

Tier 2: Enter at 0.95, Close at 0.45

Tier 3: Enter at 1.25, Close at 0.65

Trade #2: FB

Facebook’s stock has undergone a time-based correction, as it digests its most recent move right around all time highs. Very high odds of trend continuation here.

Trade Setup

Expected Price: 171.50

Sell to Open FB Nov 160/155 Put Spread

Tier 1: Enter at 0.85, Close at 0.15

Tier 2: Enter at 1.15, Close at 0.35

No Tier 3

Trade #3: TSLA

This is a “pullback to breakout” setup. Previous price resistance now acts as support, with a rising 20, 50, and 200 day moving average right below.

Trade Setup

Expected Price: 366

Sell to Open TSLA Nov 320/315 Put Spread

Tier 1: Enter at 0.90, Exit at 0.20

Tier 2: Enter at 1.20, Exit at 0.50

No Tier 3

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