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Proactive Spreads, June 25th, 2018 - WYNN, GS

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After finding 2800, the markets are seeing a pullback.

So far, this pullback is rotational, sideways, and healthy. Buyers are still in control, unless 2700 is finally taken out.

When it's rotational, that means that some stocks are still looking hot, and then others are trading like hot garbage. Other than that there really isn't much to say about this market. I'm sure I could spin some tale about trade and tarriffs and China so I could sound really smart.

Let's keep it simple. Two levels. 2800 and 2700. The longer we stay above 2700, the higher the odds of market continuation higher.

Today, we'll be looking at stocks that have hit our price levels, but the option spreads need to be updated.

Trade #1: WYNN

 

WYNN finally got that second push lower we'd been looking for since June 7th. We need to shift the trade from Jul to Aug options.

Trade Setup

Expected Price: 172

Sell to Open WYNN Aug 150/145 Put Spread

Tier 1: Enter at 0.75, Exit at 0.25

Tier 2: Enter 1.05, Exit at 0.55

Tier 3: Enter at 1.35, Exit at 0.85

 

Trade #2: GS

We've been watching this one since May 29th, and looks about ready to head to our price target.

Trade Setup

Expected Price: 221

Sell to Open GS Aug 205/200 Put Spread

(I'm not sure on the pricing on this one, because the bid/ask into the close on Friday wasn't clean. Ask was way too high so I'm putting a best guess out. If anything, wait for the stock to tag 221 and then figure out the pricing.

Tier 1: Enter at 0.70, Exit at 0.20

Tier 2: Enter at 1.00, Exit at 0.50

No Tier 3 (Earnings)

Disclaimer

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