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Full Time Profits, September 9th, 2021 – ADSK, MDB, NVDA

September 9, 2021 By Steven Place

Before we get into the setups, some quick housekeeping…

Yesterday we had a live Full Time Profits On-Ramp class, and it was a technological dumpster fire. Everything broke on me! And while we did have some great questions, I know from the numbers that many of you didn’t have the opportunity to join live because, again, everything broke.

My schedule is completely booked next week due to civic responsibilities (jury duty!), so we will have another On-Ramp class the Wednesday after that.

On to the markets…

Things look fine. That’s about as technical as we need to get right now. It’s still a grinding market, with some hot spots running, but still very rotational.

My main concern is that the next liquidity break will be so well telegraphed that it overshoots as eager dip buyers get absolutely smoked. We have established a clear pattern whereby the market will drop hard right around monthly options expiration, only to have a massive bounce afterwards. These are due to the low liquidity in the market and higher trade volumes in the options market, to the point where the “tail wags the dog.”

That’s not the most healthy market to have!

So for today’s setups, we’re going to focus on planning for a deeper drop. Sure, that may cause no trades to happen, but I would rather be sitting on my hands than trying to sell put spreads on the first decent downtick.

Trade #1: MDB

Absolutely monster move on earnings, and I think this has a sustainable range built into it. My bet here is that the earnings gap will not be fully filled due to the positive earnings drift. If it fills the gap, then I stop out with a smile on my face.

Trade Setup

Expected Price: 473

Sell to Open MDB 19Nov21 400/390 Put Spread

Tier 1: Enter at 1.75, Exit at 0.34

Tier 2: Enter at 2.45, Exit at 0.94

Tier 3: Enter at 3.15, Exit at 1.23

Stop Out If Close Under 399.89

Trade #2: NVDA

One of the strongest movers in the market right now. I’m playing for a full retest of the breakout range.

Trade Setup

Expected Price: 201

Sell to Open NVDA 15Oct21 180/177.5 Put Spread

Tier 1: Enter at 0.37, Exit at 0.05

Tier 2: Enter at 0.52, Exit at 0.11

Tier 3: Enter at 0.67, Exit at 0.14

Stop Out If Close Under 179.89

Trade #3: ADSK

Autodesk had a nasty earnings event, and can’t seem to find a bid. It’s holding support from the pivot level in July, yet I want to see one more big push down to 270 to play it.

Trade Setup

Expected Price: 269

Sell to Open ADSK 15Oct21 250/240 Put Spread

Tier 1: Enter at 1.5, Exit at 0.05

Tier 2: Enter at 2.1, Exit at 0.52

Tier 3: Enter at 2.7, Exit at 0.65

Stop Out If Close Under 249.89

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

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