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Proactive Spreads, November 9th 2017 – JPM, BA

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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.

Trade Setup

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.

Trade Setup

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

Disclaimer

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