<\/a><\/p>\nWe’re going to start off today with a look at some historical price action.<\/p>\n
This chart shows us how the S&P 500 traded for the first 8 months of 2015.<\/p>\n
No trend, all reversion. Buyers didn’t really show up… neither did sellers.<\/p>\n
This is what we call “normal” in the markets. Periods of low volatility followed (eventually) by some very strong price movement.<\/p>\n
And while I think we trade higher from here… it’s not going to be a ripper higher.<\/p>\n
The one thing that this chart doesn’t show…<\/p>\n
Was how during the entire year in 2015, there was a massive bear market underneath the surface in oil. The entire sector collapsed but you didn’t see it in the broad markets.<\/p>\n
When correlations are this low, there’s still plenty of opportunities to be had out there.<\/p>\n
Trade #1: AMZN<\/h2>\n
<\/p>\n
AMZN reported earnings and its revenue was light… this is leading to a gap down which potentially will take it to retest the previous resistance levels from November.<\/p>\n
If we come into 790 then we want to start scaling into some put spreads.<\/p>\n
Trade Setup<\/strong><\/p>\nExpected Price: 790<\/p>\n
Sell to Open AMZN Apr 720\/715 Put Spread<\/strong><\/p>\nTier 1: Enter at 0.75, Exit at 0.25<\/p>\n
Tier 2: Enter at 1.05, Exit at 0.75<\/p>\n
Tier 3: Enter at 1.35, Exit at 1.05<\/p>\n
Trade #2:\u00a0FB<\/h2>\n
<\/p>\n
Very similar structure as the AMZN trade. Disappointing reaction to earnings may bring in some more sellers and come in to retest previous support levels.<\/p>\n
Trade Setup<\/strong><\/p>\nExpected Price: 124<\/p>\n
Sell to Open FB Apr 115\/110 Put Spread<\/strong><\/p>\nTier 1: Enter at 0.80, Exit at 0.30<\/p>\n
Tier 2: Enter at 1.10, Exit at 0.80<\/p>\n
Tier 3: Enter at 1.40, Exit at 1.10<\/p>\n","protected":false},"excerpt":{"rendered":"
We’re going to start off today with a look at some historical price action. This chart shows us how the S&P 500 traded for the first 8 months of 2015. No trend, all reversion. Buyers didn’t really show up… neither did sellers. This is what we call “normal” in the markets. Periods of low volatility […]<\/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\/7515"}],"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=7515"}],"version-history":[{"count":3,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/7515\/revisions"}],"predecessor-version":[{"id":7658,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/7515\/revisions\/7658"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=7515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=7515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=7515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}