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Proactive Spreads, November 30th, 2020 – AMD, MS, TSLA

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Just a quick note today as not much has changed in the past week.

We are headed into holiday trading, which (aside from the trainwreck of 2018) means lower volume, lower volatility, and lower correlations. This market looks ready to start a steady march higher, with shallow pullbacks as capital simply rotates from one sector to the other.

We must assume trend continuation here unless key price levels are taken out. Until then, let’s just follow the trend and look for quality setups in the same names we’ve traded all year.

Trade #1: AMD

Very clean breakout here, I expect the trend to continue and I want to get long into this breakout.

Trade Setup

Expected Price: 92.1

Sell to Open AMD 18Dec20 85/82 Put Spread

Tier 1: Enter at 0.61, Exit at 0.2

Tier 2: Enter at 0.854, Exit at 0.42

Tier 3: Enter at 1.098, Exit at 0.55

Stop Out If Close Under 84.89

Trade #2: MS

Financials have seen a good run and are due for some rest and rotation (R&R). Look for the previous high and the gap fil to be the place to initiate long exposure.

Trade Setup

Expected Price: 60.27

Sell to Open MS 18Dec20 58/55 Put Spread

Tier 1: Enter at 0.48, Exit at 0.05

Tier 2: Enter at 0.672, Exit at 0.2

Tier 3: Enter at 0.864, Exit at 0.26

Stop Out If Close Under 57.89

Trade #3: TSLA

This is more of a “hope and get lucky” play, because odds are TSLA will just see very shallow pullbacks. I want to play the gap fill from a few days ago, and I expect the breakout level at 500 to hold exceptionally well.

Trade Setup

Expected Price: 521.85

Sell to Open TSLA 18Dec20 465/460 Put Spread

Tier 1: Enter at 1.3, Exit at 0.67

Tier 2: Enter at 1.82, Exit at 1.18

Tier 3: Enter at 2.34, Exit at 1.59

Stop Out If Close Under 464.89

Disclaimer

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