IWO Trading Floor

Become a Great Options Trader

Full Time Profits, April 13th 2017 – AMZN, GLD

By

The S&P 500 closed under its 50 day moving average– the first time since early November.

There continues to be more distribution and weakness underneath the surface. The major pivot level at 2350 has been lost, and the longer we hold under that level, the higher the odds of a deeper correction.

I’ll tell you this much though… it’s going to be hard to get deeper selling to happen when traders are buying protection like crazy. The VIX broke above 16, and the VVIX cleared 110. If the market sells off, those hedges will close and provide support for the market as they get balanced out.

We’re running hot into earnings season, so we’ll get more signal once vol picks up in those individual names.

Trade #1: AMZN

Pullback to breakout setup. Look for a move into the 20 day moving average at 875 and start scaling in there.

Trade Setup

Expected Price: 875

Sell to Open AMZN Jun 800/795 Put Spread

Bid/Ask is wide on this so don’t use LMT orders until we get closer to 875.

Tier 1: Open at .70, Close at 0.20

Tier 2: Open at 1.20, Close at 0.70

No Tier 3 Until After Earnings

If no fill before earnings, we will re-price the trade setup as implied volatility will have shifted.

Trade #2: GLD

125 is a key resistance level that will act as a magnet. If it hits it, I want to start fading the shiny metal.

Trade Setup

Expected Price:  125

Sell To Open  GLD Jun 132/135 Call Spread

Tier 1: Open at 0.38, Close at 0.18

Tier 2: Open at 0.53, Close at 0.38

Tier 3: Open at 0.68, Close at 0.53

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