GOOGL
This is one of the mega cap tech names that did do well through this earnings season. There was a monster gap higher on earnings that has been faded for 4 days in a row now. As we come into this internal pivot and the earnings gap fill, I expect sellers to slow down and buyers to start stepping in.
Trade Setup
Expected Price: 2814
Sell to Open GOOGL 18Mar22 2595/2590 Put Spread
Tier 1: Enter at 0.9, Exit at 0.2
Tier 2: Enter at 1.26, Exit at 0.51
Tier 3: Enter at 1.62, Exit at 0.67
Stop Out If Close Under 2594.89
XOM
Very nice move here on the back of Crude Oil. CL futures are very extended and have been known to see reversion around these levels, so it’s reasonable to expect a little bit of an exhale here. Into that, we’ll look to get long. The normal pullback over a 20 day window is around 10% which is around 74. Obviously the stock can shoot lower past that, yet given the kind of momentum it has experienced, it’s a good spot to buy.
Trade Setup
Expected Price: 77.28
Sell to Open XOM 18Mar22 70/67.5 Put Spread
Tier 1: Enter at 0.4, Exit at 0.04
Tier 2: Enter at 0.56, Exit at 0.17
Tier 3: Enter at 0.72, Exit at 0.22
Stop Out If Close Under 69.89
Trade #3: IBB
This is a weekly chart showing the magnitude of the selloff in large cap biotech. The index came back in and testsed the range highs from 2019-2020 and found a response. We will play this as a durable low and will stop out if wrong and IBB breaks to new lows.
Trade Setup
Expected Price: 132.41
Sell to Open IBB 18Mar22 122/120 Put Spread
Tier 1: Enter at 0.33, Exit at 0.04
Tier 2: Enter at 0.462, Exit at 0.15
Tier 3: Enter at 0.594, Exit at 0.19
Stop Out If Close Under 121.89