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Full Time Profits, February 22nd, 2021 – TAN, IBB, PYPL

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We’re starting to see signs of a rotational rug pull.

Sure, financials and energy stocks look good… but many pockets of momentum are getting hit. Hard.

I’m not talking about AAPL or other mega-cap tech stocks. Some of the darlings in the momentum space are seeing heavy liquidations. Solar stocks have seen 20% corrections already, and biotech has been hit as well.

I want to start scaling into long positioning in some of these areas as they offer the best risk/reward on just a little bit more of a dip.

Trade #1: TAN

This is a solar ETF that got nailed today. It’s tradign back to support and a rising trendline will come up to price here soon. I want to be involved on any further weakness this week.

Trade Setup

Expected Price: 99.01

Sell to Open TAN 19Mar21 90/85 Put Spread

Tier 1: Enter at 1.32, Exit at 0.69

Tier 2: Enter at 1.848, Exit at 1.2

Tier 3: Enter at 2.376, Exit at 1.63

Stop Out If Close Under 89.89

Trade #2: IBB

Similar structure in biotech – IBB. Looking for the pull into the 50 day moving average, and previous price support. I don’t think that this will go straight down, but establish some boring trading range like we saw in the second half of 2020.

Trade Setup

Expected Price: 160.54

Sell to Open IBB 19Mar21 153/150 Put Spread

Tier 1: Enter at 0.59, Exit at 0.18

Tier 2: Enter at 0.826, Exit at 0.38

Tier 3: Enter at 1.062, Exit at 0.51

Stop Out If Close Under 152.89

Trade #3: PYPL

This is a “first pull” setup I’ve been waiting on. The stock had good earnings and a gap higher, and the pull into that gap is where I want to start getting bullish.

Trade Setup

Expected Price: 269.14

Sell to Open PYPL 19Mar21 250/240 Put Spread

Tier 1: Enter at 1.95, Exit at 0.58

Tier 2: Enter at 2.73, Exit at 1.27

Tier 3: Enter at 3.51, Exit at 1.69

Stop Out If Close Under 249.89

Disclaimer

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