{"id":13940,"date":"2020-02-10T12:13:00","date_gmt":"2020-02-10T16:13:00","guid":{"rendered":"https:\/\/trades.iwopremium.com\/?p=13940"},"modified":"2020-02-10T12:13:00","modified_gmt":"2020-02-10T16:13:00","slug":"proactive-spreads-february-10th-2020-ibm-googl-msft","status":"publish","type":"post","link":"https:\/\/trades.iwopremium.com\/proactive-spreads-february-10th-2020-ibm-googl-msft\/","title":{"rendered":"Full Time Profits, February 10th, 2020 – IBM, GOOGL, MSFT"},"content":{"rendered":"

\"\"<\/p>\n

The past month’s action was a textbook shakeout pattern. You had failed auctions up at 3330, then a nasty news-driven gap down about 100 handles lower.<\/p>\n

Last Friday I thought the market was trading like garbage and we’d see a push to some other support levels in the high 3100s. Then we saw the strongest 4-day rally we’ve seen in over a year.<\/p>\n

We’re back at all time highs, with enough investors “shook out” of the price action for trend continuation. This is not something I want to be short-biased against.<\/p>\n

I’d love (LOVE) a deeper pullback, but any weakness is aggressively purchased. Until that ends, we need to assume that the trend will continue.<\/p>\n

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

\"\"<\/p>\n

IBM had a massive move into the 150s, and this is the first real pullback we’re seeing. I’m expecting buyers to step up again, or at least for the stock to go sideways.<\/p>\n

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

Expected Price: 152.72<\/p>\n

Sell to Open IBM Mar 145\/140 Put Spread<\/strong><\/p>\n

Tier 1: Enter at 0.65, Exit at 0.12<\/p>\n

Tier 2: Enter at 0.91, Exit at 0.21<\/p>\n

Tier 3: Enter at 1.17, Exit at 0.21<\/p>\n

Stop Out If Close Under 144.89<\/p>\n

Trade #2: GOOGL<\/p>\n

\"\"<\/p>\n

GOOGL has just broken to new highs after being congested for a full month. I expect it to squeeze similar to what we’re seeing in MSFT right now.<\/p>\n

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

Expected Price: 1495<\/p>\n

Sell to Open GOOGL Mar 1400\/1395 Put Spread<\/strong><\/p>\n

Tier 1: Enter at 0.8, Exit at 0.29<\/p>\n

Tier 2: Enter at 1.12, Exit at 0.46<\/p>\n

Tier 3: Enter at 1.44, Exit at 0.55<\/p>\n

Stop Out If Close Under 1399.89<\/p>\n

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

\"\"<\/p>\n

By multiple metrics, MSFT is quite overbought. However, we’ve seen some of these large cap tech stocks get caught in “convexity squeezes” where it accelerates further.<\/p>\n

I don’t like fading it here, but into any further acceleration we’ll get a good risk\/reward setup.<\/p>\n

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

Expected Price: 190<\/p>\n

Sell to Open MSFT Mar 200\/210 Call Spread<\/strong><\/p>\n

Tier 1: Enter at 1.5, Exit at 0.48<\/p>\n

Tier 2: Enter at 2.1, Exit at 0.75<\/p>\n

Tier 3: Enter at 2.7, Exit at 0.87<\/p>\n

Stop Out If Close Over 201.11<\/p>\n","protected":false},"excerpt":{"rendered":"

The past month’s action was a textbook shakeout pattern. You had failed auctions up at 3330, then a nasty news-driven gap down about 100 handles lower. Last Friday I thought the market was trading like garbage and we’d see a push to some other support levels in the high 3100s. Then we saw the strongest […]<\/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\/13940"}],"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=13940"}],"version-history":[{"count":1,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/13940\/revisions"}],"predecessor-version":[{"id":13945,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/13940\/revisions\/13945"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=13940"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=13940"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=13940"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}