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Full Time Profits, May 17th, 2018 – NKE, MA

May 17, 2018 By Steven Place

Markets have consolidated their gains. The Russell 2000 is breaking to new all time highs, and it appears as though everything is running on all cylinders. Unless there’s an introduction of a new narrative in the market, we should expect a run to the other end of the trading range for the S&P 500. That’s about 2800.

If the market becomes a runaway train with no pullbacks, then very few of our trade setups are going to trigger. That’s because selling spreads works best with pullbacks, so no pullbacks… no trades. I’d prefer a pull in some of the relative strength stocks to get involved in new trades.

Trade #1: NKE

Great breakout. Retail stocks have been hot over the past few months while the overall market traded like garbage. I want to see a test of the middle of yesterday’s breakout bar for a fresh entry.

Trade Setup

Expected Price: 70.53

Sell to Open NKE Jul 65/62.50 Put Spread

Tier 1: Enter at 0.35, Exit at 0.10

Tier 2: Enter at 0.50, Exit at 0.25

Tier 3: Enter at 0.65, Exit at 0.40

Trade #2: MA

Same kind of idea. Look for a 50% retrace of the most recent rally to get involved. There are several key moving averages catching up to that price level as well.

Trade Setup

Expected Price: 189

Sell to Open MA Jul 180/175 Put Spread

Tier 1: Enter at 0.90, Exit at 0.40

Tier 2: Enter at 1.20, Exit at 0.70

Tier 3: Enter at 1.50, Exit at 1.00

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

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