Whats up Traders
Tech section is taking a pounding -
I expect that the midterm elections are going to be horrible for the tech sector - Twitter, Facebook, Google, with lots and lots of threats at regulation on those companies.
Expect a big opportunity to score here with some november puts on this one.
Good Luck, DYOR
High risk bullish credit spread on XLK. Solid gap down in tech this morning, but not showing signs of continuation bearish. This is one of the set-it and forget-it spreads as we will let it go all the way till exp.
Entry 74.33
Break even 74.72
Max profit 75
0.78:1 risk/reward
More info at wingtrades.com
Hello Traders,
In this Elliott Wave analysis, we will have a look at the Technology ETF.
The ETF ended the cycle from 06/28/18 low in red wave 1 at the peak of 07/25/18 (74.26). The internals of red wave 1 unfolded as a 5 wave Elliott Wave impulsive structure. Where black wave ((i)) ended at 06/29/18 peak (70.08), black wave ((ii)) pullback at 07/02/18 (68.73). ...
Some Iv hiding out in the Tech sector due to the middle of the earnings season.
Sold -1 Sep21 70/73 strangle for $2.43 cr.
Risk: 2x cr received to upside, possibly continue to roll put to the downside.
Profit: 50% cr received or manual close on some quick profits (IV collapse due to earnings?)
Anticipating a 2% to 3% drop prior to month end, we are purchasing the August 3, $72.50 strike PUTS. Paying $0.83, we need a move below $71.60 to get us profitable. Ideally, we will get a decent drop early and can exit the position this week.
Due to RSI divergence and trade volume, to short XLK looks attractive to me.
Target at 69.47
Picture say itself.
https://www.tradingview.com/x/2ByxU3Tb/
Wow. It's having a really great run.....but...... is it possible that it is reaching an end of a 5th wave? This count would suggest so and it does look like a pretty clear 5 wave impulse since the April low. Whether it will just be another correction or a major top I have no idea but I will expect some decent downside sooner rather than later.
BOT +1 DIAGONAL XLK 100 21 SEP 18/17 AUG 18 76/72 PUT @2.75
Paid 2.75 (debt is 69% of the width )
Breakeven @ expiry $73.58
-39 delta, .96 theta
Max Loss : $275
Max Profit : $126
Notes:
Opened a bearish trade here fade the recent rally and add some negative deltas to balance the portfolio.
Following another great trade idea from NaughtyPines! (link ...
.... for a 2.74/contract debit.
Metrics:
Max Loss on Setup: $274/contract
Max Profit on Setup: $126/contract
Break Even: 73.26
Debit Paid/Spread Width Ratio: 2.74/4 or 68.5%
Theta: 1.14
Delta: -39.63
Notes: Selling semicons on strength. Will start to look to take profit at 50% of max.
I think that the most important thing to watch in the equities market this week is the action in the Technology Sector...the XLKs.
They are testing an important resistance at the $71 level. This level is important because it was an all-time high in March, followed by a quick selloff. Then it became support throughout most of May.
If the XLKs fail here they ...
The S+P Technology ETF XLK experienced a "Bearish Throw Over" Break to the Downside
on 6/25,pattern noted often by Trading View trader Geoff,
occurring when price breaks above resistance, trading above it for multiple days,
only to break back below it, dropping price back into the previous pattern,
and with it, a potential " Bull Trap " now exists on the XLK ...
Looks to me like everyone is piling into xlk. Look at the chart for $msft $aapl $amzn $nvda $nflx They all look virtually the same. No individual price discovery, just mob mentality. Be careful. all have negative RSI divergences. When everybody is on one side of the boat.....
