Update: September 10th, 2019
Closing out the trade.
Become a Great Options Trader
By Steven Place
By Steven Place
The animal spirits are at it again…
S&P off 3% on the CNY currency adjustment news. Last time that happened was Aug 2015 and we were off 5% in 3 days. I don’t think this will be like Aug 2015 because we knew it was a distinct possibility in ratcheting up the trade war.
As I type this in the overnight session, the ES futures market is down another 50 handles.
Believe it or not, this is the most ideal scenario. A gap down after an ugly Monday trade sets us up well for “turnaround Tuesday.”
Right now, we’re pretty loaded up with put spread sales, so no need to add to new stock setups.
We’ve been smart and picked our levels and scaled in, but it never feels good when the rug gets pulled into the market. Make sure into any bounce that you are aggressive in scaling out of your Tier 3 and Tier 2 positions, as odds are we will retest the low whenever it gets carved out.
TLT is overbought, but I want to see a little more of a stretch to start fading this move. We should see it if the gap higher holds tomorrow.
Trade Setup
Expected Price: 140
Sell to Open TLT Sep 145/147 Call Spread
Tier 1: Enter at 0.30, Exit at 0.05
Tier 2: Enter at 0.50, Exit at 0.25
Tier 3: Enter at 0.70, Exit at 0.45
By Steven Place
By Steven Place
By Steven Place
Buy the rumor, sell the news. After the announcement of the Fed rate cut that everyone and their grandmother knew about… stocks sold off.
We’ve seen this before…
In this case, it doesn’t seem to be enough to move the needle. Crude oil is back under 55 and the dollar is at highs relative to nearly everything out there.
It’s not world-ending action. It’s pretty normal– markets have been fairly quiet for the past few months so a little more volatility is welcome.
With that pickup in volatility, it’s useful to widen out your expected prices. Don’t use the past month’s price action as a guide for the future, because that was during a fairly quiet period.
I want to see a fill of the gap from July 7th. The rising 50 day moving average will provide support just underneath it as well.
Trade Setup
Expected Price: 41.35
Sell to Open MU Sep 36/34 Put Spread
Tier 1: Enter at 0.32, Exit at 0.02
Tier 2: Enter at 0.44, Exit at 0.22
Tier 3: Enter at 0.56, Exit at 0.34
I’ve been waiting for MSFT to finally catch some selling. I want to see a retest of the previous breakout level (or just above it).
Trade Setup
Expected Price: 132.57
Sell to Open MSFT Sep 125/120 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
Nasty selloff today. Looking for followthrough to the gap open and the rising 50 day moving average.
Trade Setup
Expected Price: 203.33
Sell to Open GS Sep 185/180 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
By Steven Place
put sales in high dividend stocks
-PFE
MSFT put spread sales
MU bullish into gap fill
SBUX bullish into gap fill
PYPL into mid 100’s
MA/V finally coming into actionable levels
NKE into 82