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Full Time Profits, August 2nd, 2018 – AMZN, CRM

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The market, for now, is holding 2800.

Let’s keep it simple here. Facebook earnings spooked a good amount of investors, which led to weakness in tech overall.

Facebook was sooooo last week. Now AAPL reported earnings, and they finally hit that $1T mark.

The reaction to earnings are driving changes in sentiment, which are leading to strong price reversals.

2800 is a good pivot level to watch. The longer we hold above it, the higher the odds we roll higher. Lose it and I’d expect a deeper pullback here.

For now, let’s be prepared in case some of these tech names pull in a little more.

Trade #1: AMZN

Pretty hard failed breakout after earnings. This stock could just jam higher into 2000 (psychological magnet), yet I want to be prepared in case it heads lower. The gap fill prior to the most recent earnings run should do the trick.

Trade Setup

Expected Price: 1710

Sell to Open AMZN Sep 1580/1570 Put Spread

Tier 1: Enter at 1.70, Exit at 1.00

Tier 2: Enter at 2.30, Exit at 1.30

Tier 3: Enter at 2.90, Exit at 1.90

Trade #2: CRM

Short term trend is broken, looking for a test of the June pivot level.

Trade Setup

Expected Price: 131

Sell to Open CRM Sep 120/115 Put Spread

Tier 1: Enter at 0.75, Exit at 0.25

Tier 2: Enter at 1.35, Exit at 0.75

No Tier 3 (Earnings)

 

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