Stick with the plan

Yesterday’s trade suffered a pullback at the open this morning breaking our quick profits winning streak.  However, with FOMC decision today I’m am going to stick with the plan thinking it could still pop depending on the news.  As I said yesterday if TBT breaks support close the position.

Today I’m looking at trade on CMG.  the stock gaped up this morning and is currently pulling back to price support.  If support holds consider a weekly contract bull put credit spread.  Take a look at the 22 DEC 17  series, selling the 305 Puts and buying the 300 Puts.  If CMG falls below $311.50 closing the trade to avoid the risk should be considered.

Recently Closed Trades

CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2^nd CSCO Trade 30%

Today’s Market Prep Note

Waiting for the Fed. After this FOMC meeting, we will likely be bidding farewell to Chairman Yellen. As her final act, she will likely leave us with an interest rate increase. That’s not a surprise the FOMC has been projecting that possibility for months now. However, there is speculation she could leave us with a nasty surprise on Wednesday in response to the Tax Reform bill. Many are thinking the FOMC could project additional interest rate increases next year as a result. Currently, they are projecting just three. Any additions could make for an interesting market reaction at tomorrow. Plan accordingly. Also, keep in mind that as the market waits for the official FOMC statement price action normally becomes light and choppy. As we reach out for new all-time highs, it would be wise to keep that in mind as you plan the path forward.

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Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.