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Full Time Profits, October 1st, 2021 – ADBE, AAPL, IBB

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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.

Trade Setup

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.

Trade Setup

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.

Trade Setup

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

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