{"id":13152,"date":"2019-09-10T11:12:03","date_gmt":"2019-09-10T15:12:03","guid":{"rendered":"https:\/\/trades.iwopremium.com\/?p=13152"},"modified":"2019-09-10T11:12:03","modified_gmt":"2019-09-10T15:12:03","slug":"proactive-spreads-september-10th-2019-sbux-shop-cat","status":"publish","type":"post","link":"https:\/\/trades.iwopremium.com\/proactive-spreads-september-10th-2019-sbux-shop-cat\/","title":{"rendered":"Full Time Profits, September 10th, 2019 – SBUX, SHOP, CAT"},"content":{"rendered":"

\"\"<\/p>\n

The S&P managed to clear the awful range that has been in place for nearly two months.<\/p>\n

And it did it on a breakaway gap higher. This is a wonderful lesson here. By the time you see confirmation and all perceived risks are off the table… the market has already priced it in!<\/p>\n

That’s what it feels like right now. And unless the market can take back 2923 it’s reasonable to assume that the market will attempt a test of the all time highs.<\/p>\n

It’s not all sunshine and rainbows. With the drop in volatility comes the drop in market correlations.<\/p>\n

That means stock rotation.<\/p>\n

Industrials and energy have seen massive moves higher, while all those stupid-crowded high-flyers have been cut down.<\/p>\n

This is a normalizing market. Some sectors move, some sectors don’t… overall volatility stays low and then the market just grinds higher.<\/p>\n

Which is fine. There are names I’ve been hoping for a pullback in for MONTHS that are finally coming into better risk\/reward for my trading style. You’ll see a few of those today.<\/p>\n

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

\"\"<\/p>\n

SBUX has just filled its gap from the previous earnings report, and has other key support levels coming into play.<\/p>\n

Could it go back to $80? Sure. Within a month? Not so much. I like fading it at this price.<\/p>\n

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

Expected Price: 91.25<\/p>\n

Sell to Open SBUX Oct 85\/82.50 Put Spread<\/strong><\/p>\n

Tier 1: Enter at 0.30, Exit at 0.05<\/p>\n

Tier 2: Enter at 0.50, Exit at 0.10<\/p>\n

Tier 3: Enter at 0.70, Exit at 0.15<\/p>\n

 <\/p>\n

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

\"\"<\/p>\n

Ah, SHOP. My white whale. I’ve tried to buy the dip on this sucker so many times over the past year… I think I managed it once back in June.<\/p>\n

This is the crowdiest of crowded trades right now. Way too many funds have been chasing performance, and I think more pain will take place before it all washes out.<\/p>\n

The obvious support is right here, at the rising 50 day moving average and previous resistance which is potential support. It might bounce here, but I think… again… it’s too crowded and you’ll see much more supply come into play. Instead I want to play the price support level put in prior to the previous earnings event. If we get there, especially quickly, that’s the best risk reward setup.<\/p>\n

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

Expected Price: 321.39<\/p>\n

Sell to Open SHOP Oct 265\/260 Put Spread<\/strong><\/p>\n

Tier 1: Enter at 0.70, Exit at 0.20<\/p>\n

Tier 2: Enter at 1.00, Exit at 0.30<\/p>\n

Tier 3: Enter at 1.30, Exit at 0.40<\/p>\n

 <\/p>\n

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

\"\"<\/p>\n

This is a China-Global-Growth Proxy play. It has not done well over the past year, and has rebounded… hard… off the lows.<\/p>\n

CAT is pricing in optimism in global trade. All it takes is a tweet and this will revert hard.<\/p>\n

On a technical basis, you have a stock with a declining 50 day moving average and it’s now 3 days above its upper Bollinger Band (not shown on chart).<\/p>\n

This is a good place to take on some short exposure.<\/p>\n

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

Expected Price: 128.65<\/p>\n

Sell to Open CAT Oct 135\/140 Call Spread<\/strong><\/p>\n

Tier 1: Enter at 1.06, Exit at 0.36<\/p>\n

Tier 2: Enter at 1.36, Exit at 0.46<\/p>\n

Tier 3: Enter at 1.66, Exit at 0.56<\/p>\n

STOP OUT ON CLOSE ABOVE 135<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The S&P managed to clear the awful range that has been in place for nearly two months. And it did it on a breakaway gap higher. This is a wonderful lesson here. By the time you see confirmation and all perceived risks are off the table… the market has already priced it in! That’s what […]<\/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\/13152"}],"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=13152"}],"version-history":[{"count":1,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/13152\/revisions"}],"predecessor-version":[{"id":13157,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/13152\/revisions\/13157"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=13152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=13152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=13152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}