![\"\"](\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2017\/03\/img_58ca93df112fb.png\")
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So far, current price action is a small correction in the context of an intermediate term rally.<\/p>\n
The S&P 500 had an exhaustion gap and spent nealry a week pulling back as the 20 day moving average caught up. Key levels were held and other than a few signs of weakness in oil and high yield debt, there really hasn’t been much in terms of true signs of a deeper correction.<\/p>\n
The Fed came out on Wednesday and did their rate hike. This was expected, anticipated, and a little bit priced in. Fed fund futures were at a 95% chance of this happening, so nobody should be shocked.<\/p>\n
We’re now coming into a point where I feel like new trades are going to be a little more “forced.” After all, spread selling works best when volatility is running hot, and we’re in a market where vol just isn’t there. Many stocks have undergone time-based corrections rather than finding any sellers.<\/p>\n
To compensate for this, I’m going to do a few things. First, I will go after spreads that have a higher credit. Second, I will use price-based stops. Third, I will not have a tier 3 on the trade. These modifications will still allow participation in this market without having a ton of risk out there.<\/p>\n
![\"\"](\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2017\/03\/img_58ca9b5aa36da.png\")
<\/p>\n
The stock has been compressing near its all time highs. The chance for it to have a deeper pullback is probably over without it running first.<\/p>\n
Trade Setup<\/strong><\/p>\n Expected Price: 854<\/p>\n Sell To Open AMZN May 810\/805 Put Spread<\/strong><\/p>\n Tier 1: Enter at 1.25, Exit at 0.55<\/p>\n Tier 2: Enter at 1.65, Exit at 1.25<\/p>\n","protected":false},"excerpt":{"rendered":" So far, current price action is a small correction in the context of an intermediate term rally. The S&P 500 had an exhaustion gap and spent nealry a week pulling back as the 20 day moving average caught up. Key levels were held and other than a few signs of weakness in oil and high […]<\/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\/7749"}],"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=7749"}],"version-history":[{"count":3,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/7749\/revisions"}],"predecessor-version":[{"id":7766,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/7749\/revisions\/7766"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=7749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=7749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=7749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}