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Setting Up a Trio of Plays

I am going short on a financial and long on two impressive tech names.
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Whether you agree with the insane pop in Facebook (FB) or even the move higher in Apple (AAPL), you can't deny how impressive the stocks have been in holding their earnings moves, especially FB. The volume traded on FB has been nothing short of incredible. Some may see the stock "struggling" around $35, but the consolidation after the move higher is not something that should be ignored.

I still prefer ratio put spreads to play it because they offer some sort of net credit or slightly more attractive entry. But if this strength holds for another day or two, then I will have to start looking at risk reversals or call spreads.

Apple (AAPL) -- Daily

Source: StockCharts.com

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AAPL is another one I've found impressive. I am willing to go for some call combinations as a close above $448 could trigger a quick push higher. I'm a buyer of the August 2 $445-460-470 calls spreads now; they are currently trading at $4.35. The break-even level is $449.35, so even a $450 pin for the week would work. The maximum value is $15 at $460. If AAPL takes off to $470, this one is only going to have a value of $5.00. If I really believed AAPL was going to $470, but was unsure of the time frame, then I would probably be more comfortable with a November or January $500 call.

I have actually gone short on LPL Financial Holdings (LPLA). The breakdown here is technical with a good shot of this one returning to at least $35. Trading at 25x earnings, this one isn't exactly cheap and with all the issues going on in the private non-traded REIT space along with other private offerings many brokers are facing, LPLA with its big network of advisors has plenty of exposure to the plethora of lawsuits we are seeing in that space. Earnings are set for July 31 before the market, so I will likely look for some partial hedge before the announcement.

LPL Financial Holdings (LPLA) -- Daily

Source: StockCharts.com

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At the time of publication, Collins as long an AAPL call combo, FB ratio put spreads, FB call spreads and short LPLA.