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Full Time Profits, August 28th, 2018 – SQ, WYNN, VMW

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Monday saw a breakway gap with upside followthrough on some trade news. Or whatever the narrative is right now.

In fact, we don’t even need news for this market to run. The lack of news can be a catalyst in and of itself.

Markets are a big overbought, but this is starting to feel more “2017-ish” where any kind of correction is tiny… where we go weeks without a 1% drop in the markets.

Personally, I don’t want that to happen. I do better when volatility is up. When I can dip buy actual dips. Right now, we’re not getting that. I’ll be a little patient here, but if the market starts going in “run-away” mode, I’ll start to sell spreads more aggressively.

Trade #1: SQ

Looking for a shallow retracement here.

Trade Setup

Expected Price: 76.63

Sell to Open SQ Oct 70/65 Put Spread

Tier 1: Enter at 0.95, Exit at 0.25

Tier 2: Enter at 1.35, Exit at 0.65

No Tier 3: We are widing out the profit potential on Tier 1 and 2, and will keep some dry powder to roll if needed.

Trade #2: WYNN

Looking for a gap fill to fade.

Trade Setup

Expected Price: 160, If hit within the next 2 weeks

Sell to Open WYNN Oct 175/180 Call 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

Trade #3: VMW

Anticipating the gap fill and a pull into the 200 day moving average.

Trade Setup

Expected Price: 138

Sell to Open VMW Oct 130/125 Put Spread

Tier 1: Enter at 0.80, Exit at 0.30

Tier 2: Enter at 1.10, Exit at 0.60

Tier 3: Enter at 1.40, Exit at 0.90

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