{"id":15661,"date":"2020-11-09T15:44:22","date_gmt":"2020-11-09T19:44:22","guid":{"rendered":"https:\/\/trades.iwopremium.com\/?p=15661"},"modified":"2020-11-24T11:21:15","modified_gmt":"2020-11-24T15:21:15","slug":"proactive-spreads-november-9th-2020-gld-pton-jpm","status":"publish","type":"post","link":"https:\/\/trades.iwopremium.com\/proactive-spreads-november-9th-2020-gld-pton-jpm\/","title":{"rendered":"Full Time Profits, November 9th 2020 – GLD, PTON, JPM"},"content":{"rendered":"

\"\"<\/p>\n

When the market transitions from a period of uncertainty to certainty that is where we tend to see strong upside price action.<\/span><\/p>\n

And we had a pretty uncertain event last week — the US elections.<\/span><\/p>\n

While things haven’t been completely confirmed with respect to the outcome\u2026 we have a pretty good idea of what’s going to happen over the next few months<\/span><\/p>\n

So when the market narrative transfers from a \u201cKnown Unknown\u201d to a \u201cKnown Known,\u201d that’s where you get strong movement to the upside<\/span><\/p>\n

What I didn’t expect this morning was Pfizer coming out and announcing that they had a workable vaccine and that is why we are seeing a strong move to the upside in small-cap stocks, Cov sensitive names, and banks.<\/span><\/p>\n

The past few months there has been a drastic performance difference between what we will call \u201cwork-from-home\u201d stocks and other areas of the market that are much more sensitive to lockdowns<\/span><\/p>\n

You’ve had things like ZM and PTN do exceptionally well this year while Airlines and cruise ships and banks have not.<\/span><\/p>\n

Today we are seeing a massive rotation back away from that theme and it sure is something to behold the Russell 2000 Weight limit up in the pre-market while the NASDAQ has continued to suck wind throughout the day<\/span><\/p>\n

Some of the WFH stocks saw a massive moves to the downside and I think that this rotation is going to continue– and be a pretty good theme as we head into the end of the year<\/span><\/p>\n

If we continue to get good data from that Pfizer vaccine then the narrative will drastically shift in the markets and we will start to see some of those forgotten sectors in the market start to outperform.<\/span><\/p>\n

That means we can start looking more at getting long Banks we can start looking more at shorting some of these high flyer momentum names that are richly overvalued.<\/span><\/p>\n

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

\"\"<\/p>\n

After getting everyone’s hopes up about a breakout, GLD sees a massive jam lower as “risk off” isn’t in vogue right now.<\/p>\n

Long term trend is still up, and I like buying this support and scaling in through the rising 200 day moving average.<\/p>\n

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

Expected Price: 175<\/p>\n

Sell to Open GLD 18Dec20 166\/163 Put Spread<\/strong><\/p>\n

Tier 1: Enter at 0.43, Exit at 0.03<\/p>\n

Tier 2: Enter at 0.602, Exit at 0.12<\/p>\n

Tier 3: Enter at 0.774, Exit at 0.14<\/p>\n

Tier3 Filled<\/p>\n

Stop Out If Close Under 165.89<\/p>\n

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

\"\"<\/p>\n

PTON had a mini-crash because gyms are going to open up. It’s a high-growth stock that is seeing a transition in narrative and a breakdowin in technicals. Into retracements I think shorts offer good risk\/reward.<\/p>\n

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

Expected Price: 116.34<\/p>\n

Sell to Open PTON 18Dec20 140\/145 Call Spread<\/strong><\/p>\n

Tier 1: Enter at 0.75, Exit at 0.02<\/p>\n

Tier 2: Enter at 1.05, Exit at 0.26<\/p>\n

Tier 3: Enter at 1.35, Exit at 0.32<\/p>\n

Stop Out If Close Over 141.11<\/p>\n

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

\"\"<\/p>\n

Financials are seeing massive breakouts, and JPM is the “best of breed” and one of my favorite trading vehicles. I’m treating this move like a post-earnings trade where I am anticipating continued drift higher.<\/p>\n

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

Expected Price: 115.24<\/p>\n

Sell to Open JPM 18Dec20 105\/100 Put Spread<\/strong><\/p>\n

Tier 1: Enter at 0.63, Exit at 0.05<\/p>\n

Tier 2: Enter at 0.882, Exit at 0.05<\/p>\n

Tier 3: Enter at 1.134, Exit at 0.05<\/p>\n

Stop Out If Close Under 104.89<\/p>\n","protected":false},"excerpt":{"rendered":"

When the market transitions from a period of uncertainty to certainty that is where we tend to see strong upside price action. And we had a pretty uncertain event last week — the US elections. While things haven’t been completely confirmed with respect to the outcome\u2026 we have a pretty good idea of what’s going […]<\/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\/15661"}],"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=15661"}],"version-history":[{"count":4,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/15661\/revisions"}],"predecessor-version":[{"id":15747,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/15661\/revisions\/15747"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=15661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=15661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=15661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}