SPX 0dte Trading - Oct 26’22 3770/3775 3890/3895 Iron Condor
Updated
💡 SPX 0dte Trading - Oct 26’22 3770/3775 3890/3895 Iron Condor
Credit: $85
The 1H has remained in overbought territory since last Friday and is overdue for pause/pullback.
$3,900 remains the key level on the upside and is considered our best case scenario this week. On the downside, $3,800 is now strong support. There is positive drift if SPX remains above the gamma flip line of $3,770 as dealer and systematic flows are supportive for price which adds liquidity and should reduce realized volatility.
DXY/UST yields continue their slide, however, as the US10Y yield tags 4% we could see a rebound attempt. The inverse correlation between equities and yields/DXY continues to hold true.
MSFT, GOOGL both down 7+% this morning. The combined weight of the two companies amounts to more than 14% of the Nasdaq 100. With growth underperforming this will likely cap the upside today.
From an internals perspective, ADD is in positive territory, volatility is getting sold and the further reduction in the PCC signals positive delta flows still the primary trade as it has been the past three trading sessions.
Overall many mixed signals. If needed will make adjustments defensive or offensive and as always will leg out of the IC using our momo process.
0DTE TRADERS
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Credit: $85
The 1H has remained in overbought territory since last Friday and is overdue for pause/pullback.
$3,900 remains the key level on the upside and is considered our best case scenario this week. On the downside, $3,800 is now strong support. There is positive drift if SPX remains above the gamma flip line of $3,770 as dealer and systematic flows are supportive for price which adds liquidity and should reduce realized volatility.
DXY/UST yields continue their slide, however, as the US10Y yield tags 4% we could see a rebound attempt. The inverse correlation between equities and yields/DXY continues to hold true.
MSFT, GOOGL both down 7+% this morning. The combined weight of the two companies amounts to more than 14% of the Nasdaq 100. With growth underperforming this will likely cap the upside today.
From an internals perspective, ADD is in positive territory, volatility is getting sold and the further reduction in the PCC signals positive delta flows still the primary trade as it has been the past three trading sessions.
Overall many mixed signals. If needed will make adjustments defensive or offensive and as always will leg out of the IC using our momo process.
0DTE TRADERS
✅ Trade Ideas & Alerts
✅ Market Analysis
✅ Education
Note
Closed puts for $5, better than expected.Now just managing the calls.
Trade closed: target reached
Some stress on the call side, I added higher and closed them out for $25 on the sharp move lower back to 3850In 110 (avg), Out 30 (avg) per contract
Trade closed: target reached
Expired worthless
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