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Full Time Profits, November 9th, 2018 – RUT, GLD, AAPL

November 9, 2018 By Steven Place

Just two weeks after facing the abyss, the S&P 500 has retraced nearly 2/3rds of the recent move lower. After capitulative moves like we have seen, this is normal. From here we should expect some testing of recent breakout levels, and we want to see the nature of these pullbacks.

Are they coming with no liquidity and bids dropping out all over the place? Or are buyers going to start showing up into any kind of weakness? That’s what I’m focusing on into next week.

There is a gap right around 2750 that I think will get filled sooner than later. For the market to be constructive, you don’t want to see 2700 lost anytime soon.

Adjustment #1: RUT

This is the last major trade adjustment that needs to be made by November expiration. Just like the others, we are going to roll down and out to December and start selling call spreads to help pay for the cost of the roll.

Trade Adjustment

Buy to Close RUT Nov 1610/1605 Put Spread @4.80

Sell to Open RUT Dec 1600/1595 Put Spread @3.20

Net Debit: 1.60

Then

Sell to Open RUT Dec 1635/1640 Call Spread

Tier 1: Enter at 0.90, Exit at 0.10

Tier 2: Enter at 1.30, Exit at 0.30

Tier 3: Enter at 1.60, Exit at 0.50

Trade #2: GLD

This is an update to a previous trade setup on Oct 31st that never got filled. 115 was tested again, and this is a good spot to scale into some new put spread sales.

Trade Setup

Expected Price: 114.34

Sell to Open GLD Dec 112/109 Put Spread

Tier 1: Enter at 0.43, Exit at 0.13

Tier 2: Enter at 0.63, Exit at 0.33

Tier 3: Enter at 0.83, Exit at 0.53

Trade #3: AAPL

Look for a retest of its most recent earnings low as it attempts to push down to the previous quarter’s gap fill at 190.

Trade Setup

Sell to Open AAPL Dec 180/175 Put Spread

Tier 1: Enter at 0.65, Exit at 0.15

Tier 2: Enter at 0.95, Exit at 0.45

Tier 3: Enter at 1.25, Exit at 0.75

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

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