The S&P 500 has been stuck in a 20 handle range for over a week. This is incredibly “boring” tape.
You know what they say about boring markets. They aren’t easy shorts.
I’d prefer a pullback. We’ve got a gap fill back around 2830, but if we’re going sideways and stocks are rotating, it’s tough to make a call for an immediate pullback.
The stock has made a lower high and looks ready to find some sellers. Look for a pull to previous resistance and the rising 50 day moving average.
Expected Price: 226.62
Sell to Open MA May 210/205 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
Trade #2: BIDU
After a strong breakout, the stock is reversing hard into key support levels. I like playing this one and running a stop under 160.
Expected Price: 171.20
Sell to Open BIDU May 160/155 Put Spread
Tier 1: Enter at 1.07, Exit at 0.37
Tier 2: Enter at 1.37, Exit at 0.67
Stop on Close Under 160
Trade #3: NFLX
NFLX is one of the last high beta NASDAQ stocks to breakout. I like anticipating the breakout and running a stop under range lows.
Expected Price: 367
Sell to Open NFLX May 340/335 Put Spread
Tier 1: Enter at 1.25, Exit at 0.55
Tier 2: Enter at 1.55, Exit at 0.85
No Tier 3
Stop Out On Close Under 342