Sellers showed up briefly today… people are blaming the yield curve flattening and a tax deal that fell through yet to me it is just the reintroduction of a rotational correction in the overall markets. The first major level I’m watching is the 20 day moving average, currently around 2570. The key level on the S&P under that is 2540… if we lose that then we’ll have confirmation of a break in trend.
Trade #1: JPM
Looking for a pullback into the 50 day moving average and the previous breakout range.
Expected Price: 96
Sell to Open JPM Jan 90/87.50 Put Spread
Tier 1: Enter at 0.44, Exit at 0.05
Tier 2: Enter at 0.59, Exit at 0.20
Tier 3: Enter at 0.74, Exit at 0.40
Trade #2: BA
The stock has been quiet for a very, very long time. I’m looking for a “rug pull” to the previous range. From there buyers should step in and curb selling. If the stock doesn’t see that sellof and just rips higher, then it’s a no-trade.
Expected Price: 247
Sell to Open BA Jan 225/220 Put Spread
Tier 1: Enter at 0.60, Exit at 0.10
Tier 2: Enter at 0.90, Exit at 0.40
Tier 3: Enter at 1.20, Exit at 0.70