• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

IWO Trading Floor

Become a Great Options Trader

  • Customer Center

Full Time Profits, April 30th, 2018 – PYPL, BA

April 30, 2018 By Steven Place

The “base case” for the market still remains the same.

We’re working out a large, multi-month correction. Rangebound in nature, with high volatility in between.

So far there hasn’t been any price action to invalidate that case.

We’re pushing through the rest of the big earnings reports this week (looking at you, AAPL) and after that I expect the summer to continue to be choppy.

I don’t think that we’re due for some kind of a market crash… yet there are not many leading stocks here. You’ve got LULU, COP, and V… other than that many other charts reflect what we’re seeing in the market. Choppy ranges and higher volatility.

Trade #1: PYPL

I’m looking for a shakeout trade in Paypal. Here’s how it’s going  to play out.

Last weeks lows get broken, and then the stock loses 72.50. Selling accelerates, and the 200 day moving average is broken.

That’s enough price action for a narrative to get started and the stock jams into 70. That’s where institutions will pull their bid and then reverse the stock higher as they sweep up better prices for their holdings.

The technical term for this action is a 2b reversal, also known as a failed breakdown.

Trade Setup

Expected Price: 70

Sell to Open PYPL Jun 65/62.50 Put Spread

Tier 1: Enter at 0.40, Exit at 0.10

Tier 2: Enter at 0.60, Exit at 0.20

Tier 3: Enter at 0.80, Exit at 0.40

Trade #2: BA

This is an update to a setup from about a month ago. We’re adjusting to June options.

Trade Setup

Expected Price: 300

Sell to Open BA Jun 275/270 Put Spread

Tier 1: Enter at 0.80, Exit at 0.30

Tier 2: Enter at 1.10, Exit at 0.60

Tier 3: Enter at 1.40, Exit at 0.90

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

Primary Sidebar

© 2021 Global Profit Systems International