{"id":10428,"date":"2018-02-15T10:24:29","date_gmt":"2018-02-15T14:24:29","guid":{"rendered":"https:\/\/trades.iwopremium.com\/?p=10428"},"modified":"2018-02-15T10:24:29","modified_gmt":"2018-02-15T14:24:29","slug":"proactive-spreads-february-15th-2018-aapl-rut-ebay","status":"publish","type":"post","link":"https:\/\/trades.iwopremium.com\/proactive-spreads-february-15th-2018-aapl-rut-ebay\/","title":{"rendered":"Full Time Profits, February 15th, 2018 – AAPL, RUT, EBAY"},"content":{"rendered":"

\"\"<\/p>\n

It’s been a wild ride over the past two weeks.<\/p>\n

First, let’s talk about the “why” of the selloff.<\/p>\n

The simplest answer is… we hadn’t done it in a while. It was the longest we had gone without a 5% pullback in the history of the markets, so it was reasonable to expect some pullback.<\/p>\n

The fundamental catalyst wasn’t any significant geopolitical event… it was structural in the market. Basically, US Treasury yields got to a level where investors poked their head up and realized that you could start getting better risk adjusted returns in bonds versus stocks. If a lot of people collectively did that all at once, then selling takes hold. Which is fine.<\/p>\n

Now that’s part 1 of the selloff. The second part relates specifically to volatility. Meaning… it broke.<\/p>\n

XIV, a short vol etf, collapsed because there were too many people leaning on short volatility. I believe that’s what caused the major instability to come into the markets.<\/p>\n

As of now, that volatility “upside crash” has seemed to go away as those volatility shorts were all blown out in one big move.<\/p>\n

This is great for us. I don’t want to go too much into it, but all the rookie vol shorts are cleaned out which means higher premiums for us to sell.<\/p>\n

I’m looking for more two way action, with a shortable entry point into any squeeze higher. From there we should get a nice tradeable range on the indexes with plenty of individual stock dips to buy.<\/p>\n

Trade #1: RUT<\/h2>\n

\"\"<\/p>\n

Looking to short this into it’s declining 20 and 50 day moving averages.<\/p>\n

Trade Setup<\/strong><\/p>\n

Expected Price: 1550<\/p>\n

Sell to Open RUT Apr 1650\/1660 Call Spread<\/strong><\/p>\n

Tier 1: Enter at 1.20, Exit at 0.20<\/p>\n

Tier 2: Enter at 1.80, Exit at 0.80<\/p>\n

Tier 3: Enter at 2.30, Exit at 1.30<\/p>\n

Trade #2: AAPL<\/h2>\n

\"\"<\/p>\n

I’d like to see a quick push into previous resistance. If we “grind” into that level then it’s not an easy short, but if we see 175 in the next 5 trading days then it’s a fadeable level.<\/p>\n

Trade Setup<\/strong><\/p>\n

Expected Price: 175<\/p>\n

Sell to Open AAPL 190\/195 Call Spread<\/strong><\/p>\n

Tier 1: Enter at 0.60, Exit at 0.10<\/p>\n

Tier 2: Enter at 0.90, Exit at 0.40<\/p>\n

Tier 3: Enter at 1.20, Exit at 0.70<\/p>\n

Trade #3: EBAY<\/h2>\n

\"\"<\/p>\n

Big earnings gap that was faded while the rest of the market tanked. Still a very healthy trend and holding up better than much of the market. I like an entry right here.<\/p>\n

Trade Setup<\/strong><\/p>\n

Expected Price: 42.44<\/p>\n

Sell to Open EBAY Apr 38\/36 Put Spread<\/strong><\/p>\n

Tier 1: Enter at 0.22, Close at .02<\/p>\n

Tier 2: Enter at 0.34, Close at 0.14<\/p>\n

Tier 3: Enter at 0.46, Close at 0.26<\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

It’s been a wild ride over the past two weeks. First, let’s talk about the “why” of the selloff. The simplest answer is… we hadn’t done it in a while. It was the longest we had gone without a 5% pullback in the history of the markets, so it was reasonable to expect some pullback. […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":""},"categories":[24],"tags":[],"_links":{"self":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/10428"}],"collection":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/comments?post=10428"}],"version-history":[{"count":2,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/10428\/revisions"}],"predecessor-version":[{"id":10434,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/10428\/revisions\/10434"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=10428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=10428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=10428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}