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Proactive Spreads, September 6th, 2018 – V, NVDA, AMZN, GOOGL

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While the S&P is putting int he most orderly pullback in recent memory, there is a bloodbath in tech.

Fine. Good. Markets needed a pullback and we’ve been looking for it, so now we get our list ready and start looking for the best opportunities.

Trade #1: V

 

This is a 3 standard deviation LL pattern. The stock saw a 3 standard deviation move lower yesterday, and now we want to see a lower low into the previous range.

Trade Setup

Expected Price: 141.60

Sell to Open V Oct 135/130 Put Spread

Tier 1: Enter at 0.66, Exit at 0.16

Tier 2: Enter at 0.96, Exit at 0.46

Tier 3: Enter at 1.26, Exit at 0.76

Trade #2: NVDA

Looking for a pullback to breakout and a test of the rising 20 day moving average.

Trade Setup

Expected Price: 266

Sell to Open NVDA Oct 240/235 Put Spread

Tier 1: Enter at 0.72, Exit at 0.22

Tier 2: Enter at 1.02, Exit at 0.52

Tier 3: Enter at 1.32, Exit at 0.82

Trade #3: AMZN

Similar setup as NVDA, looking for a test of the previous range and the rising 20 day moving average.

Trade Setup

Expected Price: 1929.21

Bid/Ask Spread is very wide and pricing is bouncing around. Wait for the price to come in, then make sure these prices line up!

Sell To Open AMZN Oct 1755/1750 Put Spread

Tier 1: Enter at 0.90, Exit at 0.40

Tier 2: Enter at 1.20, Exit at 0.70

Tier 3: Enter at 1.50, Exit at 1.00

 

Trade #4: GOOGL

The stock has seen two days in a row below it’s lower Bollinger Band (not shown) and is due for a bounce.

Trade Setup

Expected Price: 1174.15

Sell to Open GOOGL Oct 1080/1070 Put Spread

Tier 1: Enter at 1.45, Exit at 0.45

Tier 2: Enter at 2.05, Exit at 1.05

Tier 3: Enter at 2.65, Exit at 1.65

Disclaimer

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