{"id":7715,"date":"2017-03-06T11:07:58","date_gmt":"2017-03-06T15:07:58","guid":{"rendered":"https:\/\/trades.iwopremium.com\/?p=7715"},"modified":"2017-03-06T11:10:12","modified_gmt":"2017-03-06T15:10:12","slug":"proactive-spreads-march-6th-2017-amzn-cat","status":"publish","type":"post","link":"https:\/\/trades.iwopremium.com\/proactive-spreads-march-6th-2017-amzn-cat\/","title":{"rendered":"Full Time Profits, March 6th 2017 – AMZN, CAT"},"content":{"rendered":"

\"\"<\/p>\n

Stocks are working off their overbought conditions by a lack of buyers coming in to followthrough, as well as a handful of profit takers.<\/p>\n

In other words, don’t expect an apocalypse anytime soon. So far this is a normal pullback, and actually a very tame one.<\/p>\n

There’s a gap fill support at 2363 along with a rising 20 day moving average. That should be the first line where the market holds. More major support levels come into play at 2300 and 2270.<\/p>\n

I expect any kind of pullback to be rotational in nature. Tech stocks did not participate in the most recent rally, so it’s a good bet to start anticipating lower prices and planning some spread sales into those.<\/p>\n

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

\"\"<\/p>\n

The stock is undergoing a failed breakout. Previous resistance from October was taken out, but no followthrough and then a lower high while the overall market was making higher highs.<\/p>\n

Expect this one to head towards the lower end of this year’s range, testing the rising 50 day moving average.<\/p>\n

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

Expected Price: 820<\/p>\n

Sell to Open AMZN Apr 760\/755 Put Spread<\/strong><\/p>\n

Tier 1: Open at 0.60, Close at 0.20<\/p>\n

Tier 2: Open at 0.90, Close at 0.60<\/p>\n

Tier 3: Open at 1.20, Close at 0.90<\/p>\n

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

\"\"<\/p>\n

This is a news-related play.<\/p>\n

The company got raided on a Federal tax probe. That’s why you saw the high volume selling from last week.<\/p>\n

Now when you see news like this, it’s rarely a one-off event. There’s still plenty of uncertainy surrounding the investigation, and I’m pretty sure that the 4 month range the stock has been in will be lost.<\/p>\n

What I’m looking for is a swift move to 85. That’s the gap fill from back in November, and there are some support levels just underneath it.<\/p>\n

Now this is important! The speed at which we hit that level is crucial. If it’s a slow bleed lower and we eventually test 85 in a month, then it’s not a good trade. But if we see aggressive selling and capitulation, that’s where you want to get involved.<\/p>\n

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

Expected Price: 85<\/p>\n

Sell to Open Apr 80\/75 Put Spread<\/strong><\/p>\n

Tier 1: Open at 0.80, Close at 0.30<\/p>\n

Tier 2: Open at 1.10, Close at 0.80<\/p>\n

Tier 3: Open at 1.40, Close at 1.10<\/p>\n","protected":false},"excerpt":{"rendered":"

Stocks are working off their overbought conditions by a lack of buyers coming in to followthrough, as well as a handful of profit takers. In other words, don’t expect an apocalypse anytime soon. So far this is a normal pullback, and actually a very tame one. There’s a gap fill support at 2363 along with […]<\/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\/7715"}],"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=7715"}],"version-history":[{"count":3,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/7715\/revisions"}],"predecessor-version":[{"id":7721,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/7715\/revisions\/7721"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=7715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=7715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=7715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}