IWO Trading Floor

Become a Great Options Trader

Full Time Profits, March 22nd, 2018 – ADBE, AMZN, MA

By

Markets are getting a little looser. The headlines say “trade war” but the true narrative driving price is Fed voodoo. Yesterday there was a Fed meeting that led to a small amount of strength that was aggressively faded throughout the rest of the day and into the overnight session.

My base case is currently reversion, yet the longer price is “accepted” at current levels, the fewer buyers will be in control, which could potentially lead to a loss of 2600. Both the Nasdaq and Russell 2000 are holding up much better, and that may help reinforce the “trade war” narrative that’s pushing forward.

Right now my trade strategy remains to sell put spreads into pullbacks on good relative strength names.

Trade #1: ADBE

Great earnings report, the stock has been in a solid uptrend for months. The conversion to a SAAS company has definitely helped their model. I”m looking for a retest of the most recent pivot high.

Trade Setup

Expected Price: 210

Sell to Open ADBE May 190/185 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

Looking for a pull into the rising 50 day moving average.

Trade Setup

Expected Price: 1470

Sell to Open AMZN May 1260/1250 Put Spread

Tier 1: Enter at 1.20, Exit at 0.20

Tier 2: Enter at 1.80, Exit at 0.80

Tier 3: Enter at 2.40, Exit at 1.40

Trade #3: MA

Looking for the 50 day moving average and prior support.

Trade Setup

Expected Price: 170

Sell to Open MA May 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

 

 

Disclaimer

U.S. GOVERNMENT REQUIRED DISCLAIMER – COMMODITY FUTURES TRADING COMMISSION. FUTURES AND OPTIONS TRADING HAS LARGE POTENTIAL REWARDS, BUT ALSO LARGE POTENTIAL RISK. YOU MUST BE AWARE OF THE RISKS AND BE WILLING TO ACCEPT THEM IN ORDER TO INVEST IN THE FUTURES AND OPTIONS MARKETS. DON’T TRADE WITH MONEY YOU CAN’T AFFORD TO LOSE. THIS WEBSITE IS NEITHER A SOLICITATION NOR AN OFFER TO BUY/SELL FUTURES OR OPTIONS. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED ON THIS WEBSITE. THE PAST PERFORMANCE OF ANY TRADING SYSTEM OR METHODOLOGY IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY, SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN