NPP Trades Monday Special 6.20.22
The last two weeks have been pretty brutal stopping me out of most trades. I am coming into this week extremely light with nothing but a SPY bull put spread and I don’t have a huge risk appetite for a lot more. But, given how oversold we are, I have a couple of trade ideas to play a potential bounce.
SPY
The SPY is very oversold and nearly hit the 360 level last week, which is fairly strong support. And looking at the 4-hour /ES chart, I am seeing a big positive divergence on the RSI5. These conditions usually provide a decent bounce. So, if the SPY gaps up on Tuesday and overtakes the 371 level after the first 30 minutes of trading, I’ll jump in 500 shares with a first target of 380 and an ultimate target of 410ish. 380 is the previous May support that may become resistance. And 410 would get us all the way to the 50sma and blue downtrend line that I’ve been waiting to be tested for a month.
And if we lose that 360 support on Tuesday, I will sell the weekly 350 puts to take advantage of the bloated premium. The 350 level is at the .50 retrace from the March 2020 lows to all-time highs and should hold through Friday.
So either way we go, I have a plan to make money on SPY next week. Below are the charts to use as reference.
SWING
There are no swing ideas this week. This is not an environment to try and hold any individual stocks for more than just a quick trade.
PREMIUM
The only idea I see right now to sell put premium in is AMD. It is extremely oversold and nearing major support at 75. I will look to sell the 75 puts at the open on Tuesday. The current price is .68/contract and I would sell around 20 contracts.
That’s all for now. Paid subscribers will continue to get updates throughout the week on any new ideas. And here is the link to all open and closed trades…