Last week I said that if Paypal PYPL got to 72.50 that it was a sell. It did that so I bought puts on Friday. The stock entered the zone I highlighted in the chart attached. I am looking for 69.30- 69.80 to book a gain if I see it. A close over Friday’s high would be a sign the position is wrong. If the latter occurs I would look for a retrace to scratch the trade at breakeven. I would not get out immediately as I still don’t think the market is really going to run away from here. The leaders of AAPL, MSFT, GOOG, AMD, TSLA I think need a breather. And it doesn’t look to me like the secondary stocks are in a position to extend the overall market rally without the aid of the heavy weights.
On Friday I also added a credit spread for the SPY. Any weakness any time over the next 3 days of 2 or 3 SPY points below Friday’s close I will look to book a profit there. So toward 4480 SPY. I remain short Datadog DDOG via the spread from Thursday. DDOG was down $1 last Friday. A close below 106 by this Friday is a100% gain. Right now I think that is likely, but will obviously remain flexible.