Stocks continue higher after a solid breakout. We’re a touch overbought but nothing extreme. As long as SPX stays under that upper channel trendline (yellow line) then it’s not parabolic. Any corrections continue to be time-based and rotational.
Trade #1: CVX
Pullback to breakout setup. Looking for 112 and the rising 20 day moving average to come into play.
Expected Price: 112
Sell to Open CVX Nov 105/100 Put Spread
Tier 1: Enter at 0.50, Close at 0.10
Tier 2: Enter at 0.90, Close at 0.30
Tier 3: Enter at 1.20, Close at 0.70
Trade #2: HD
Similar trade as CVX. Looking for a pull into the previous pivot level, and a move to the 20 day moving average.
Expected Price: 155
Sell to Open HD Nov 145/140 Put Spread
Tier 1: Enter at 0.60, Close at 0.10
Tier 2: Enter at 0.90, Close at 0.40
Tier 3: Enter at 1.20, Close at 0.80