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Proactive Spreads, January 2nd, 2018 - WYNN, AMZN

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New year, new market?

Nah... looks to be more of the same. Grinding moves higher with rotation underneath the surface. Volatility, both realized and implied, staying low.

Until we see evidence to the contrary, we must structure risk with the assumption that the market will continue with its trend. Once volatility does pick up (and it will) then we can time entries a little wider.

Trade #1: WYNN

There is an unfilled gap just under 160 that is my target and anticipated long entry for some put spreads.

Trade Setup

Expected Price: 160

Sell to Open WYNN Feb 145/140 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: AMZN

This is a compression breakout setup and I expect the stock to move to new all time highs over the next month.

Trade Setup

Expected Price: 1189

Sell to Open AMZN Feb 1095/1090 Put Spread

Tier 1: Enter at 0.75, Exit at 0.25

Tier 2: Enter at 1.05, Exit at 0.55

Tier 3: Enter at 1.35, Exit at 0.85

Disclaimer

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