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Full Time Profits, May 11th, 2018 – AAPL, NVDA, CMG, FB

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We are starting off today’s newsletter with a look at QQQ – the Nasdaq 100 ETF.

Earnings are out. Headline risk is gone. Overall markets are making higher highs and higher lows.

Yet near term, we’re a touch extended.

QQQ is coming into a HUGE resistance area at 170. This is the gap fill area from the “island top” pattern put in at the most recent peak.

I’m not super bearish here. I think the headline risk has worn off and any correction will be sideways before we make a move higher.

The gameplan here is to look for pullbacks in the strongest stocks.

Trade #1: AAPL

After its earnings, the stock is a touch extended. It has broken to new highs, and I think any backfill will be bought here as it restest its previous breakout levels.

Trade Setup

Expected Price: 185

Sell to Open AAPL Jul 170/165 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

Trade #2: NVDA

NVDA just released earnings. Good numbers, yet they were probably priced in with the most recent ramp higher. Look for a pull to that gap fill to start scaling in. If it runs to 300 without us, so be it.

Trade Setup

Expected Price: 242

Sell to Open NVDA Jul 210/205 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

Trade #3: CMG

This is a post-earnings bull flag. Expect higher prices.

Trade Setup

Expected Price: 427.50

Sell to Open CMG Jul 370/365 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

 

 

 

Trade #4: FB

Massive earnings gap, and the stock is jamming higher into all time highs without much of a pullback. This is one large cap tech I like as a short here.

Trade Setup

Expected Price: 187.27

Sell to Open FB Jul 205/210 Call Spraed

Tier 1: Enter at 0.73, Exit at 0.23

Tier 2: Enter at 1.03, Exit at 0.53

Tier 3: Enter at 1.33, Exit at 0.83

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