IWO Trading Floor

Become a Great Options Trader

Full Time Profits, July 19th, 2018 – CSX, UAL

By

It’s pretty slow out there. We’re seeing rotation back into financials and industrials, and next week is basically a huge earnings bonanza.

That’s right, I said bonanza.

I still think that the market is going to grind up into 2850. The Nasdaq has already hit new highs, and smallcaps are within spitting distance.

The simplest trade here is to look for the big earnings breakouts and play the first pullback. It may just end up being that simple, and it’s the main strategy I’ll be pursuing over the next few weeks.

Trade #1: CSX

CSX beat on earnings, good revenue growth and had a breakout to new highs. I expect the earnings low to hold here.

Trade Setup

Expected Price: 68.24

Sell to Open CSX Aug 65/62.50 Put Spread

Tier 1: Enter at 0.30, Exit at 0.05

Tier 2: Enter at 0.50, Exit at 0.20

No Tier 3, Potentially roll to September.

Trade #2: UAL

Same premise here. Strong move, look for a pullback. It may take a couple days or maybe a week for it to happen.

Trade Setup

Expected Price: 80

Sell to Open UAL Sep 72.50/70 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

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