{"id":15888,"date":"2020-12-21T16:46:14","date_gmt":"2020-12-21T20:46:14","guid":{"rendered":"https:\/\/trades.iwopremium.com\/?p=15888"},"modified":"2020-12-21T16:46:14","modified_gmt":"2020-12-21T20:46:14","slug":"proactive-spreads-december-21st-2020-chwy-tsla-roku","status":"publish","type":"post","link":"https:\/\/trades.iwopremium.com\/proactive-spreads-december-21st-2020-chwy-tsla-roku\/","title":{"rendered":"Full Time Profits, December 21st, 2020 – CHWY, TSLA, ROKU"},"content":{"rendered":"

\"\"<\/p>\n

Happy winter solstice everyone!<\/p>\n

We’ll just call this market “weird.” I won’t attempt to explain the why behind the moves, but I will tell you what is happening.<\/p>\n

The markets opened down by a sizeable amount.\u00a0It was U-G-L-Y. We saw a probe lower into the first hour of trading, then all of a sudden the buy programs come back on. It’s holiday trading, and lower liquidity makes it pretty interesting.<\/p>\n

Underneath the surface, it’s getting weirder. There are many names that are marching to their own beat, completely uncorrelated to the market. It reminds me of the move in JKS a few months ago, where a buyer just provides constant pressure in these names.<\/p>\n

That’s my focus for today, trying to fade some of these momentum names.<\/p>\n

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

\"\"<\/p>\n

CHWY is a name I thought got overbought about 20 points ago. It’s now hitting extremes and with the elevated option premia we have a good spot to play this.<\/p>\n

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

Expected Price: 107.36<\/p>\n

Sell to Open CHWY 120 120\/125 Call Spread<\/strong><\/p>\n

Tier 1: Enter at 0.9, Exit at 0.2<\/p>\n

Tier 2: Enter at 1.26, Exit at 0.51<\/p>\n

Tier 3: Enter at 1.62, Exit at 0.67<\/p>\n

Stop Out If Close Over 120.11<\/p>\n

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

\"\"<\/h2>\n

TSLA hit S&P inclusion last friday which led to a spike higher in both price and volume. Id like to see a “rug pull” and test some recent levels. This is the third time we’ve attempted to pick up the dip in this name since it broke 450.<\/p>\n

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

Expected Price: 601.48<\/p>\n

Sell to Open TSLA 15Jan21 540\/535 Put Spread<\/strong><\/p>\n

Tier 1: Enter at 1.15, Exit at 0.49<\/p>\n

Tier 2: Enter at 1.61, Exit at 0.93<\/p>\n

Tier 3: Enter at 2.07, Exit at 1.24<\/p>\n

Stop Out If Close Under 539.89<\/p>\n

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

\"\"<\/p>\n

Similar structure in CHWY. It gapped higher on Thursday, but took out that day’s high today. I think we’re getting close to a top.<\/p>\n

Trade Setup<\/p>\n

Expected Price: 351.72<\/p>\n

Sell to Open ROKU 15Jan21 385\/390 Call Spread<\/p>\n

Tier 1: Enter at 1.2, Exit at 0.55<\/p>\n

Tier 2: Enter at 1.68, Exit at 1.01<\/p>\n

Tier 3: Enter at 2.16, Exit at 1.36<\/p>\n

Stop Out If Close Over 385.11<\/p>\n","protected":false},"excerpt":{"rendered":"

Happy winter solstice everyone! We’ll just call this market “weird.” I won’t attempt to explain the why behind the moves, but I will tell you what is happening. The markets opened down by a sizeable amount.\u00a0It was U-G-L-Y. We saw a probe lower into the first hour of trading, then all of a sudden the […]<\/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\/15888"}],"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=15888"}],"version-history":[{"count":1,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/15888\/revisions"}],"predecessor-version":[{"id":15893,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/15888\/revisions\/15893"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=15888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=15888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=15888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}