John Carter Markets Analysis: Volatility and a Trade in VIPS

John Carter discusses volatility in the market and how to trade VIPS. On Tuesday the markets were volatile after commentary from Yellen. She said biotech and social media stocks were extended, which sent the market down. Afterwards most stocks, such as AAPL and INTC, recovered. Carter says there is a huge amount of open interest in AAPL at $100 and suggests selling at-the-money puts or put spreads. Carter says KO has a nice weekly consolidation and monthly squeeze. He says MMM sees a quiet consolidation and squeeze, and he is looking for a pop in that stock. There was a pullback in SPWR, but the squeeze is starting to set up; a squeeze over a small time frame can give the most powerful move, he thinks SPWR is building up this momentum. Carter likes VIPS after there was a pullback to the ADMA. The stock is poised to make new highs, moving to the extension at $208. He suggests investors sell one-standard deviation put credit spread and take small in-the-money calls, looking for a breakout and a move to $208.¿