Three key indices are in danger of triggering new option positions in the PRO Service, any day this week or next. With the deluge of earnings reports on the calendar this week, we want to be nimble and on the lookout for climatic price action. IWM 120 - We want to be short IWM via Jun 16th $175P (5.36-5.39) at any time it appears IWM will close below $176.00. The Wave 3 targets range as far as 30 pts all the way down into the 140's, so there is a lot of potential to this trade. If IWM were to regain footing above 176.00, hold and await further instructions. QQQ 120 A QQQ close below 313 triggers an initial position into the Jun 16 $300P (5.30-5.32). As with IWM, this too has a lot of downside potential, but this is a big earnings week for the Q's. including MSFT after the close today. A year ago MSFT, "beat" earnings in their April report, and promptly tanked from $285 to $240 at Jun expiration. VIX Hourly This will likely be our most aggressive new trade, but there are no parameters set yet for taking it, nor decision on strike/expiration. We will be buying calls, but how far into the future and how far above current price levels will depend on how dynamic price is in its initial reach above $20. Way out of the money 2-month calls could become very attractive on a steep spike higher, possibly earnings related, or a black swan news event related. Price action at the time will dictate strategy. Day-to-day. TSLA TSLA is looking for terra firma before launching it's next leg higher. We will be drilling down on shorter-term charts once the low is more convincingly in.
