Proactive Spreads, July 23rd, 2018

Still very constructive action. Not much new to add here. There’s a ton of earnings coming out this week and I’m expecting continuation higher. All we’re doing is looking for pullbacks in those strong names.

Trade #1: VMW

This stock has a “sawtooth” pattern about it. Strong move over a day or two, followed by 2-3 weeks of “back and fill.”

The stock has almost completely filled the gap from the most recent catalyst, and I expect that to hold.

Trade Setup

Expected Price: 151

Sell to Open VMW Sep 135/130 Put Spread

Tier 1: Enter at 0.75, Exit at 0.25

Tier 2: Enter at 1.05, Exit at 0.55

Tier 3: Enter at 1.35, Exit at 0.85

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Proactive Spreads, July 23rd, 2018 – VMW

Trade #1: VMW

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