{"id":16253,"date":"2021-03-22T20:19:52","date_gmt":"2021-03-23T00:19:52","guid":{"rendered":"https:\/\/trades.iwopremium.com\/?p=16253"},"modified":"2021-03-25T18:17:26","modified_gmt":"2021-03-25T22:17:26","slug":"proactive-spreads-march-22-2021-cop-wynn-cmi","status":"publish","type":"post","link":"https:\/\/trades.iwopremium.com\/proactive-spreads-march-22-2021-cop-wynn-cmi\/","title":{"rendered":"Full Time Profits, March 22nd, 2021 – COP, WYNN, CMI"},"content":{"rendered":"

\"\"<\/p>\n

Markets are undergoing a “rotational correction” right now. After lagging for a few weeks, tech had a good run today, while banks, energy, and industrials all took a back seat.<\/p>\n

This is driven by the narrative surrounding rates:<\/p>\n

    \n
  1. Rising rates are good for banks, and commidities run when inflation expectations increase<\/li>\n
  2. Falling rates are good for tech as they are deflationary in nature<\/li>\n<\/ol>\n

    These aren’t set in stone– it’s simply the current narrative that the market is working with.<\/p>\n

    Let’s talk rates, and bonds. It’s a freefall, complete crash mode as the long bond trade has the worst start to the year since… something like 20 years?<\/p>\n

    Of course we are coming out of the “deflationary vortex” spiral so some reversion is warranted… just in the short term I’m expecting this relationship to revert a bit.<\/p>\n

    If that happens we should get some very nice entries in the inflationary theme.<\/p>\n

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

    \"\"<\/p>\n

    With the hard selloff in crude last week, Conoco has seen a nice pullback here. I think we’ve seen enough blood– if we do knock out a lower low, odds are it will be on the back of a momentum divergence. Given where the stock has come from, I expect buyers to start showing up between here and the low 50s.<\/p>\n

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

    Expected Price: 52.22<\/p>\n

    Sell to Open COP 21May21 45\/42 Put Spread<\/strong><\/p>\n

    Tier 1: Enter at 0.48, Exit at 0.05<\/p>\n

    Tier 2: Enter at 0.672, Exit at 0.2<\/p>\n

    Tier 3: Enter at 0.864, Exit at 0.26<\/p>\n

    Stop Out If Close Under 44.89<\/p>\n

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

    \"\"<\/p>\n

    Very nice run from a few months ago, on the continued optimism about travel unlocking soon. I think the premise is sound, it’s just that the stock got a little bit ahead of itself. I want to start a fresh entry off those buying wicks from two weeks ago.<\/p>\n

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

    Expected Price: 127.71<\/p>\n

    Sell to Open WYNN 21May21 115\/110 Put Spread<\/strong><\/p>\n

    Tier 1: Enter at 1.05, Exit at 0.37<\/p>\n

    Tier 2: Enter at 1.47, Exit at 0.76<\/p>\n

    Tier 3: Enter at 1.89, Exit at 1.01<\/p>\n

    Stop Out If Close Under 114.89<\/p>\n

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

    \"\"<\/p>\n

    One of my favorite traders, I’m looking for a deeper pullback here. If we don’t get it, we don’t get it, but I am looking for an attempt of the most recent breakout levels as an entry.<\/p>\n

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

    Expected Price: 257.74<\/p>\n

    Sell to Open CMI 21May21 240\/230 Put Spread<\/strong><\/p>\n

    Tier 1: Enter at 2, Exit at 0.64<\/p>\n

    Tier 2: Enter at 2.8, Exit at 1.36<\/p>\n

    Tier 3: Enter at 3.6, Exit at 1.8<\/p>\n

    Stop Out If Close Under 239.89<\/p>\n","protected":false},"excerpt":{"rendered":"

    Markets are undergoing a “rotational correction” right now. After lagging for a few weeks, tech had a good run today, while banks, energy, and industrials all took a back seat. This is driven by the narrative surrounding rates: Rising rates are good for banks, and commidities run when inflation expectations increase Falling rates are good […]<\/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\/16253"}],"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=16253"}],"version-history":[{"count":4,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/16253\/revisions"}],"predecessor-version":[{"id":16267,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/16253\/revisions\/16267"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=16253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=16253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=16253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}