IWO Trading Floor

Become a Great Options Trader

Full Time Profits, July 16th, 2019 – DIS, COST, ADBE

By

Markets continue their grind higher. This feels like summer trading combined with a perceived narrative in the markets.

First, we have earnings coming up… starting this week. Second, we have the Fed cut at the end of the month.

Yes, cut. It’s already priced in. The Fed Funds Futures are at a 100% chance of a cut. If you think they won’t cut, then you can make a boatload of money going against the market.

This is a buy the rumor sell the news kind of event. If the market is jamming higher into the end of the month, that will be a good time to start getting aggressively short. Until then, it’s best to focus on pullbacks in relative strength stocks.

Trade #1: DIS

I think DIS will continue to trade up into 150. Any dips are buyable as anyone who missed the boat on the breakout will be adding to positions into any dip.

Trade Setup

Expected Price: 143

Sell to Open DIS Sep 135/130 Put Spread

Tier 1: Enter at 0.78, Exit at 0.28

Tier 2: Enter at 1.08, Exit at 0.58

Tier 3: Enter at 1.38, Exit at 0.88

Trade #2: COST

This is the strongest stock on my screeners. Definitely due for a retracement of the most recent move, and into that retracement I want to be a buyer. I expect the stock to eventually pull into 275, which is where the 20 day moving average will be to support price.

Trade Setup

Expected Price: 275

Sell to Open COST 30Aug19 265/260 Put Spread

Tier 1: Enter at 0.80, Exit at 0.30

Tier 2: Enter at 1.10, Exit at 0.60

Tier 3: Enter at 1.40, Exit at 0.90

Trade #3: ADBE

I’m looking for a full retracement into the gap fill from the beginning of the month.

Trade Setup

Expected Price: 294.65

Sell to Open ADBE Sep 265/260 Put Spread

Tier 1: Enter at 0.70, Exit at 0.20

Tier 2: Enter at 1.00, Exit at 0.50

Tier 3: Enter at 1.30, Exit at 0.80

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