I am looking to run it back on the pick from last week — TLT. With /zb trading above major resistance with good momentum structures and a heavy equity market I think we can see /zb & TLT push into the next resistance zone. I am looking to play it via the 170/175 call debit for May monthly.
Trade of the Week is two-fer… Long TLT calls and Long IWM puts. Trend following each. I like the Russell as most susceptible to weakness and I continue to the long bond/short yield. They compliment each other as well.
NFLX is currently firing long off a 195m Squeeze. A standard call fly offers better risk reward, but an unbalanced broken-wing butterfly offers a better probability of success. We’ll set up the latter for today’s Trade of the Week.
Today I look at a call butterfly in AMD based off of the $49.33 Fireline, I am two bucks wide into Friday for this idea. 48/50/52 strikes.
Trading the Oversold Rip —Today we are finally seeing an up day in the market, which sets the stage for short covering and a continued oversold rip. Here is how I’m going to trade it, if we get some follow through.
Expiration in DIS — I think DIS is good for a countertrend opportunity, bouncing into the monthly expiration.
I am doing a simple bounce trade in the NDX as we come into the FED next week — I will use a Call Debit Spread 8700 / 8710 to keep it simple(R) and get a good risk reward; risk 1000 to make 4000. BUY +5 VERTICAL NDX 100 20 MAR 20 [AM] 8700/8710 CALL @2.00 LMT
I like TGT from a setup on my weekly chart. The setup is a bust if we break this cluster.
Today, I look to open a short in BABA. I am seeing multiple signals on the daily that momentum is rolling over + a very solid 2-day setup and squeeze to provide downside momentum. The setup combined with the China narrative I think can get prices to break support and test $195. For the trade I look to buy the 210/200 put debit spread for April monthly, however, I am putting in an entry below the market in anticipation of a move up, first.
Legging Into a “Two Step” Call Vertical
INTC is pulling back into the 13EMA, as shown by the visible dots of the Propulsion indicator, which is a “smart” EMA. The trade is valid to the 34 EMA Wave… the idea is to get long (buy) the Apr 17 67.5 calls on today’s weakness, and wait for perhaps a second opportunity to buy the Apr 17 65 calls, if we sell further to the 21EMA or the 34 EMA Wave. If I want to offset cost and reduce risk I can compliment the long calls with a short 72.5 call position — completing a call vertical.