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Proactive Spreads, November 14th, 2017 – AAPL, WYNN

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The “trendiness” in this market is now completely gone. We’re seeing rotational action and consolidation and should expect that to continue until key price levels are broken.

2565 has been tested 3 times, another test will likely provide some downside action to 2540. I’m not super bearish on stocks here– just that the market is attempting to probe both lower and higher to figure out where the trading range will be into the end of the year.

Many investors are expecting either an end of year rally or some kind of big selloff. Currently we should assume that the sideways path is the most likely.

Trade #1: AAPL

A pullback into the 20 day moving average gives us a good buy the dip setup.

Trade Setup

Expected price: 168

Sell to Open AAPL Jan 155/150 Put Spread

Tier 1: Enter at 0.70, Exit at 0.20

Tier 2: Enter at 1.00, Exit at 0.50

Tier 3: Enter at 1.30, Exit at 0.80

Trade #2: WYNN

Look for a pb2bo – pullback to breakout pattern – into previous resistance and potential support.

Trade Setup

Expected Price: 147

Sell to Open WYNN Jan 130/125 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 1.30, Exit at 0.80

Disclaimer

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