This makes sense because big rallies are usually bounces. Looking for higher then lower into next week.
key pivot level, small distribution here, AAPL AMZN eps up on deck
Over 6% in 5 days, lots of bad news flow in front of earnings, expecting it to be priced in, March put spread sales here.
AAPL had a failed breakout... and these often lead to a test of the range lows. If those range lows don't hold, then I'm looking for a move to the low 160's. If all of that happens before earnings it's a good bet to sell put spreads pre-earnings. If not, wait for post-earnings move for new setup.
Stop looking at the VIX... look at the VVIX instead. There continues to be more demand for hedging against VIX rise compared to 2016. We're not seeing extreme complacency in the options market.
CAT jammed higher into earnings. And the results released were pretty darn good. Massive beats. Yet this is one of those times where the pre-earnings run priced in good numbers. Given the rejection after the earnings event, the stock is seeing some pretty good weakness short term. Look for retracements and start selling put spreads into them.
Looking for a gap fill at 261 to start selling March bull put spreads into.
If we see a gap fill, start layering into some March bull put spreads.