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Full Time Profits, December 14th, 2020 – WMT, ROKU, JPM

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Stocks have seen a pretty good run over the past month, but we are starting to see signs of… not sellers, but a lack of buyers.

Look, we’re coming into the end of the year, and if institutions wanted to chase prices higher, they probably have already. It’s the last full week of the year and I expect pullbacks to be shallow.

Trade #1: WMT

WMT has come into a level I’ve been watching for a couple weeks now. You’ve got the rising 50 day moving average, previous price support, and a trendline support that is catching up to price. After a clean move from all time highs, I’m looking for buyers to step up again.

Trade Setup

Expected Price: 146.06

Sell to Open WMT 15Jan21 140/135 Put Spread

Tier 1: Enter at 0.83, Exit at 0.12

Tier 2: Enter at 1.162, Exit at 0.39

Tier 3: Enter at 1.494, Exit at 0.5

Stop Out If Close Under 139.89

Trade #2: ROKU

This sucker is overbought 10 ways to Sunday, and while I don’t like it short here, I do want to anticipate the first rug pull. It’s been a while since the stock has had one, and it needs it. I’m targeting the previous pivot resistance level, along with the rising 20 day moving average that should catch up here pretty soon.

(And if you wanted it short, I’m looking for 345 then 360.)

Trade Setup

Expected Price: 291

Sell to Open ROKU 15Jan21 245/240 Put Spread

Tier 1: Enter at 0.82, Exit at 0.1

Tier 2: Enter at 1.148, Exit at 0.36

Tier 3: Enter at 1.476, Exit at 0.48

Stop Out If Close Under 244.89

Trade #3: JPM

Still a clear winner this quarter. Financials are week and we can see a little bit more of a rollover, yet into the previous range is where I want to be involved.

These options will include earnings– the report is the day of opex. So if the stock is close to our strike price we will bail before the earnings event to avoid any of that risk.

Trade Setup

Expected Price: 116.56

Sell to Open JPM 15Jan21 110/105 Put Spread

Tier 1: Enter at 1.03, Exit at 0.35

Tier 2: Enter at 1.442, Exit at 0.72

Tier 3: Enter at 1.854, Exit at 0.96

Stop Out If Close Under 104.89

 

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