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Proactive Spreads, June 24th, 2019 – GLD, ADBE, MDB

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Markets finished at new highs last week, and I expect that we will continue to grind higher in anticipation of the Fed rate cut that is basically priced in July.

Right now, we’re seeing “weird” things. Gold, bonds, and stocks are all at 12 month highs at the same time. This has happened once before– 2016– and no other time since 2000. I’m not going to read too much into this, but it’s probably related to the Fed cutting while markets are at all time highs instead of reacting after ugly price action.

Macro risks aside, I’m focusing on a fade in gold and looking to play post-earnings moves in two tech stocks.

Trade #1: GLD

Gold is parabolic, but I think we need to wait for a bigger push to justify taking on any kind of risk. So into any further squeeze I’ll take advantage of a fade.

Trade Setup

Expected Price: 134

Sell to Open GLD Jul 138/140 Call Spread

Tier 1: Enter at 0.33, Exit at 0.03

Tier 2: Enter at 0.45 Exit at 0.20

Tier 3: Enter at 0.57, Exit at 0.22

Trade #2: ADBE

Great move after earnings, I want to play a pullback if and when it comes.

Trade Setup

Expected Price: 296

Sell to Open ADBE Jul 280/275 Put 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: MDB

Looking for a retest of the low end of the trading range, and a potential retest of the post-earnings swing high back from March.

Trade Setup

Expected Price: 162

Sell to Open MDB Jul 150/145 Put Spread

Tier 1: Enter at 0.70, Exit at 0.20

Tier 2: Enter at 1.00, Exit at 0.50

Tier 3: Enter at 1.30, Exit at 0.80

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