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Proactive Spreads, October 2nd, 2017 - TXN, UNP

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After a month of consolidation, the S&P 500 is breaking to new highs. It's playing catch up after smallcaps (Russell 2000 index) has gone parabolic.

Our trade approach here is pretty straight-forward. We're now hunting for pullbacks in names that have broken out but are extended.

Trade #1: TXN

Looking for a pb2ma - pullback to moving average.

Trade Setup

Expected Price: 86

Sell to Open TXN Nov 82.5/77.5 Put Spread 

Tier 1: Enter at 0.75, Close at 0.25

Tier 2: Enter at 1.05, Close at 0.45

Tier 3: Enter at 1.35, Close at 0.95

Trade #2: UNP

Similar setup as TXN-- looking for the pullback into its 20 day moving average.

Trade Setup

Sell To Open UNP Nov 105/100 Put Spread

Tier 1: Enter at 0.60, Close at 0.10

Tier 2: Enter at 0.90, Close at 0.50

Tier 3: Enter at 1.20, Exit at 0.80

Disclaimer

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