IWO Trading Floor

Become a Great Options Trader

Full Time Profits, April 17th, 2017 – FB, FDX

By

The air has been let out of the balloon.

Momentum has clearly shifted and buyers are no longer in control. There’s a pivot support level at 2322, and if that is lost, then we should get a swift move down to the previous resistance at 2300.

With that said, this market has been characterized as one giant “left-behind” trade, where we haven’t seen a proper pullback in so long that if it doesn’t come again, and we manage to hold back above 2350 again, then investors will be forced to buyin to stocks in a price-insensitive nature.

Base case is still reversion. Earnings season will bring more vol and more trading opportunities. Make sure to go back and look at the newsletter archives for names that are coming into our price levels.

Trade #1: FB

This may not get a fill before earnings so keep that in mind.

First support is 137.50 and if you want to play for a bounce there, that’s fine, but I’m looking for a deeper correction into 135 which is the major pivot level from the past year’s trade.

Trade Setup

Expected Price: 135

Sell to Open FB Jun 125/120 Put Spread

Tier 1: Open at 0.80, Close at 0.30

Tier 2: Open at 1.10, Close at 0.80

Tier 3: Open at 1.40, Close at 1.10

Trade #2: FDX

This is another look at a trade idea from March 30th. We need to update the strikes and prices.

Trade Setup

Expected Price: 180

Sell to Open FDX Jul 160/155 Put Spread

Tier 1: Open at 0.80, Close at 0.30

Tier 2: Open at 1.10, Close at 0.80

Tier 3: Open at 1.40, Close at 1.10

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