{"id":12106,"date":"2019-01-23T22:51:01","date_gmt":"2019-01-24T02:51:01","guid":{"rendered":"https:\/\/trades.iwopremium.com\/?p=12106"},"modified":"2019-01-23T22:51:01","modified_gmt":"2019-01-24T02:51:01","slug":"proactive-spreads-january-24th-2019-lulu-pypl-gld","status":"publish","type":"post","link":"https:\/\/trades.iwopremium.com\/proactive-spreads-january-24th-2019-lulu-pypl-gld\/","title":{"rendered":"Full Time Profits, January 24th, 2019 – LULU, PYPL, GLD"},"content":{"rendered":"

\"\"<\/p>\n

In December, the market continued to sell off further and faster than what the majority thought.<\/p>\n

Why, then, does it come as a shock to so many market participants that the rally has also squeezed, further and faster, than what the majority thought?<\/p>\n

The S&P retook 2600 — key support from Fall 2018 — with no hesitation whatsoever. Until that character changes, it will be very difficult for the market to rollover<\/p>\n

An attempt at a retest isn’t a terrible idea, and generally that’s what happens.<\/p>\n

It just tends to take longer than what most people thing. You need a full options expiration cycle to burn off all that premium that hedgers bought in anticipation of the rollover.<\/p>\n

The gameplan here is to start following relative strength.<\/p>\n

We just spent a few months of a macro-dominated market where all stocks moved on the same conveyor belt with no reversion whatsoever. I’m calling a top on that theme. Expect more reversion, and expect more rotation in this market.<\/p>\n

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

\"\"<\/p>\n

This stock has been on a tear since the sales numbers came out earlier this month. The 150’s *should* bring in some sellers as the previous support from September comes into play. I’d like to see a gap fill and a little push lower to get involved.<\/p>\n

Trade Setup<\/p>\n

Expected Price: 142.30<\/p>\n

Sell to Open LULU Mar 125\/120 Put Spread<\/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 #2: PYPL<\/h2>\n

 <\/p>\n

\"\"<\/p>\n

One of the strongest stocks in the market. It has earnings coming up, so I’ll play it if it tests the previoius resistance levels from Oct-Dec.<\/p>\n

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

Expected Price: 87.34<\/p>\n

Sell to Open PYPL Mar 77.5\/75 Put Spread<\/strong><\/p>\n

Tier 1: Enter at 0.35, Exit at 0.05<\/p>\n

Tier 2: Enter at 0.50, Exit at 0.25<\/p>\n

Tier 3: Enter at 0.65, Exit at 0.40<\/p>\n

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

\"\"<\/p>\n

Gold is still incredibly strong given how hard everything else has reverted. There is some confluence at 120 that I want to be involved with.<\/p>\n

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

Expected Price: 120<\/p>\n

Sell to Open GLD Mar 117\/114 Put Spread<\/strong><\/p>\n

Tier 1: Enter at 0.32, Exit at 0.05<\/p>\n

Tier 2: Enter at 0.47, Exit at 0.22<\/p>\n

Tier 3: Enter at 0.62, Exit at 0.37<\/p>\n","protected":false},"excerpt":{"rendered":"

In December, the market continued to sell off further and faster than what the majority thought. Why, then, does it come as a shock to so many market participants that the rally has also squeezed, further and faster, than what the majority thought? The S&P retook 2600 — key support from Fall 2018 — with […]<\/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\/12106"}],"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=12106"}],"version-history":[{"count":2,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/12106\/revisions"}],"predecessor-version":[{"id":12112,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/12106\/revisions\/12112"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=12106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=12106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=12106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}