Quite the reversal this Friday, after a pierce of the week’s lows. My contention from past two weeks is that it’s very hard to see followthrough in this market when everyone hedged so stinkin’ aggressively last monday– see VIX and VVIX for how that played out.
So we’re seeing the squeeze, which probably won’t be the last, and the most likely scenario right now is for the market to have high volatility chop without a ton of followthrough in either direction. That’s good for us.
Trade #1: ADBE
After climbing to to 670, the stock had a nasty pullback after its earnings event. This is a good place to put risk on.
Expected Price: 575.71
Sell to Open ADBE 19Nov21 530/525 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 529.89
Trade #2: AAPL
Good little flush in AAPL. I was looking for 138’s, and still am, so we’ll have some setups just in case this isn’t the capital-L low.
Expected Price: 138.52
Sell to Open AAPL 19Nov21 125/120 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 124.89
Trade #3: IBB
Large cap biotech took a hit today on the MRK drug news, sending MRNA lower. Look for a reattempt of these lows in the next week for a new trade.
Expected Price: 157
Sell to Open IBB 19Nov21 145/140 Put Spread
Tier 1: Enter at 0.89, Exit at 0.19
Tier 2: Enter at 1.246, Exit at 0.48
Tier 3: Enter at 1.602, Exit at 0.64
Stop Out If Close Under 144.89