• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

IWO Trading Floor

Become a Great Options Trader

  • Customer Center

Full Time Profits, March 15th, 2021 – FB, JPM, BA

March 15, 2021 By Steven Place

Led by financials and industrials, the S&P jammed to new all time highs, just when it looked like the wheels were going to fall off.

“New all time highs” is never a bearish reading for me, but we can consider how a rotational correction can get started.

If you look at XLI (industrials), XLE (energy), and XLF (financials), they were largely spared from the carnage. I am looking for rotation out of those names, and into those “first pullbacks” I want to get involved.

 

Trade #1: FB

FB is a good play here due to the relative strength against the other mega-cap Nasdaq stocks. While AAPL and MSFT were getting hit 2 weeks ago and making new swing lows, FB made a higher low against the January lows. I think the stock is setup for a breakout here soon, and we can absolutely anticipate breakouts using our system.

Trade Setup

Expected Price: 273.29

Sell to Open FB 16Apr21 255/250 Put Spread

Tier 1: Enter at 1, Exit at 0.32

Tier 2: Enter at 1.4, Exit at 0.68

Tier 3: Enter at 1.8, Exit at 0.9

Stop Out If Close Under 254.89

Trade #2: JPM

JPM has seen a nice run, but it’s extended in the near term. Look for this breakout to fail and for the stock to run towards the other end of the range, that will give us the best risk/reward to take.

Trade Setup

Expected Price: 147.16

Sell to Open JPM 16Apr21 140/135 Put Spread

Tier 1: Enter at 0.67, Exit at 0.07

Tier 2: Enter at 0.938, Exit at 0.11

Tier 3: Enter at 1.206, Exit at 0.13

Stop Out If Close Under 139.89

Trade #3: BA

I think we can call this a breakout.

Boeing is running hot right now, and due for a pull, but I don’t think we will see a full test of the previous support level as institutional interest will be too strong. Instead I’m keying off the price action from Friday, any pull should give us good risk/reward.

Trade Setup

Expected Price: 258

Sell to Open BA 16Apr21 230/225 Put Spread

Tier 1: Enter at 0.86, Exit at 0.15

Tier 2: Enter at 1.204, Exit at 0.44

Tier 3: Enter at 1.548, Exit at 0.57

Stop Out If Close Under 229.89

 

Disclaimer

U.S. GOVERNMENT REQUIRED DISCLAIMER – COMMODITY FUTURES TRADING COMMISSION. FUTURES AND OPTIONS TRADING HAS LARGE POTENTIAL REWARDS, BUT ALSO LARGE POTENTIAL RISK. YOU MUST BE AWARE OF THE RISKS AND BE WILLING TO ACCEPT THEM IN ORDER TO INVEST IN THE FUTURES AND OPTIONS MARKETS. DON’T TRADE WITH MONEY YOU CAN’T AFFORD TO LOSE. THIS WEBSITE IS NEITHER A SOLICITATION NOR AN OFFER TO BUY/SELL FUTURES OR OPTIONS. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED ON THIS WEBSITE. THE PAST PERFORMANCE OF ANY TRADING SYSTEM OR METHODOLOGY IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY, SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN

Primary Sidebar

© 2021 Global Profit Systems International