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Proactive Spreads, June 28th, 2021 – ADBE, NKE, ROKU

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After that shakeout last week, markets came back and hit new all time highs.

Again.

We are in holiday-weekend-low-volume-rally mode. Risk on sectors like EV and solar are running, and with a win against the FTC, Facebook and Google are jamming to new highs.

I’m not going to chase here. There are some quality stocks that, for the past few months, traded like hot garbage. They’ve retaken their trends, so the first pullback can be a very lucrative spot to put on risk.

Trade #1: ADBE

Adobe has seen a massive breakout higher on the back of a great earnings report. It is extended here, and I’d consider a short… yet tech is a freight train right now.

Instead, I’ll focus on the retrace to 560.

Trade Setup

Expected Price: 560

Sell to Open ADBE 20Aug21 525/520 Put Spread

Tier 1: Enter at 1.05, Exit at 0.37

Tier 2: Enter at 1.47, Exit at 0.76

Tier 3: Enter at 1.89, Exit at 1.01

Stop Out If Close Under 524.89

Trade #2: NKE

Monster move on earnings… and this comes after trading like trash for over 6 months.

Look for the pullback into its prior resistance level to initiate a position.

Trade Setup

Expected Price: 145

Sell to Open NKE 20Aug21 135/130 Put Spread

Tier 1: Enter at 0.7, Exit at 0.04

Tier 2: Enter at 0.98, Exit at 0.17

Tier 3: Enter at 1.26, Exit at 0.21

Stop Out If Close Under 134.89

Trade #3: ROKU

Great breakout, looking for a retest of the breakout level. I think there’s a good amount of bagholders above 450 ready to get out at breakeven, so that would lead to the retest of the prior resistance levels.

Trade Setup

Expected Price: 396

Sell to Open ROKU 20Aug21 355/350 Put Spread

Tier 1: Enter at 1.47, Exit at 0.86

Tier 2: Enter at 2.058, Exit at 1.46

Tier 3: Enter at 2.646, Exit at 1.98

Stop Out If Close Under 354.89

 

Disclaimer

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