Trade Ideas | April 10, 2018

April 10, 2018

Here's what's on my radar so far this week as markets appear to be on the comeback:

 

$XBI - this Biotech ETF looks to be forming a bottom and is trading above the previous support level of 88.11, but I would consider an 88 handle to be bullish. I'm looking for a follow through move tomorrow to confirm this move and will look to sell puts underneath because the ETF has an IVP > 50

 

$SMH - the semiconductors ETF is also looking to form a bottom, and if tomorrow we trade and hold above 104, I would consider that bullish and would look to sell puts. I would probably pick 1 of these 2, not both, as they are ways to play a market/NASDAQ rebound without actually trading $QQQ. You don't want to have what essentially become identical positions when both are so highly correlated to each other and $QQQ.

 

$FB - Watch this as a bellwether for Silicon Valley stocks like $GOOGL $AMZN and the like. I would like to trade this around earnings because I think that many analysts believe this latest data breach thing could be the company's "Chipotle moment." I think implied volatility will be extreme going into earnings on May 2 but ultimately I believe that $FB user base will remain largely unchanged. Ask yourself this: how many people do YOU personally know that have completely left Facebook?

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