{"id":7927,"date":"2017-05-08T09:14:44","date_gmt":"2017-05-08T13:14:44","guid":{"rendered":"https:\/\/trades.iwopremium.com\/?p=7927"},"modified":"2017-05-18T08:08:04","modified_gmt":"2017-05-18T12:08:04","slug":"proactive-spreads-may-8th-2017-fb-googl-unp","status":"publish","type":"post","link":"https:\/\/trades.iwopremium.com\/proactive-spreads-may-8th-2017-fb-googl-unp\/","title":{"rendered":"Full Time Profits, May 8th 2017 – FB, GOOGL, UNP"},"content":{"rendered":"

\"\"<\/p>\n

For the past week, the market thesis has been:<\/p>\n

As long as the gap holds, we go higher.<\/p>\n

Pretty simple, right? That’s what looks like is going to continue here. The S&P 500 has spent two weeks in a range, consolidating the most recent impulse higher. The underlying market has been rotational in nature, which is healthy.<\/p>\n

So the trade thesis remains the same. Until evidence proves otherwise, we need to assume the overall market is setup for continuation.<\/p>\n

Trade Setup #1: FB<\/h2>\n

\"\"<\/p>\n

FB got a little ahead of itself before its most recent earnings event. The Stock had two aggressive gaps higher, only to see those gains given back after earnings.<\/p>\n

This is an EPS LL setup. We’re looking for that lower low to flush out the weak hands who are holding into the initial weakness after earnings.<\/p>\n

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

Expected Price: 145<\/p>\n

Sell to open FB Jun 140\/135 Put Spread<\/strong><\/p>\n

Tier 1: Enter at 0.70, Exit at 0.20<\/p>\n

Tier 2: Enter at 1.00, Exit at 0.70<\/p>\n

Tier 3: Enter at 1.30, Exit at 1.00<\/p>\n

Trade Setup #2: GOOGL<\/h2>\n

\"\"<\/p>\n

After a massive gap higher, the stock is ready to rest. Odds are 1,000 will come into play this year, simply because it is a whole number psychological level. But odds are over the next few weeks the stock will pull in or go sideways for a while.<\/p>\n

Because the overall market is strong, we need to be very, very picky about which prices to short. We want to see a bit more of a stretch before we put risk on the table.<\/p>\n

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

Expected Price: 960<\/p>\n

Sell to Open GOOGL Jun 1000\/1010 Call Spread<\/strong><\/p>\n

Tier 1: Enter at 1.00, Exit at 0.50<\/p>\n

Tier 2: Enter at 1.40, Exit at 1.00<\/p>\n

No Tier 3<\/p>\n

Trade Setup #3: UNP<\/h2>\n

\"\"<\/p>\n

After a strong earnings gap, the stock has found profit takers and is retesting the top of the previous range. This is a PB2BO setup– we’re looking for the pullback to the breakout level to hold.<\/p>\n

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

Expected Price: 110<\/p>\n

Sell to Open UNP Jun 105\/100 Put Spread<\/strong><\/p>\n

Tier 1: Enter at 0.65, Exit at 0.25<\/p>\n

Tier 2: Enter at 0.95, Exit at 0.65<\/p>\n

Tier 3: Enter at 1.25, Exit at 0.95<\/p>\n","protected":false},"excerpt":{"rendered":"

For the past week, the market thesis has been: As long as the gap holds, we go higher. Pretty simple, right? That’s what looks like is going to continue here. The S&P 500 has spent two weeks in a range, consolidating the most recent impulse higher. The underlying market has been rotational in nature, which […]<\/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\/7927"}],"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=7927"}],"version-history":[{"count":1,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/7927\/revisions"}],"predecessor-version":[{"id":7962,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/7927\/revisions\/7962"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=7927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=7927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=7927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}