SPY OPTIONS TRADE OPPORTUNITY
Here is an interesting possible options trade opportunity for you.
With the market being comfortably above 300, and heading to 320, which being a round number is now an objective price target and the level for covering longs, if the mkt gets that high on an impulse.
So here is the thing. You might buy monthly put options on 310-315 range when/if the mkt reaches 320. The pullback is inevitable simply due to the above mentioned long covers that is to be accelerated by the amassing of the short positions on the same level. Anyway, we are likely to dive below 310 on a pullback, so your put options will yield.
If that is to happen, then the most likely support is 300. The mkt is unlikely to break this level, so the second part of the trade is to sell covered puts in the highlighted area below 300. Covered puts, because, safety first, and secondly, if the 300 lvl is broken, the closest real support is at 280 only!
You might play both trades or do just one of them. Watch the mkt and how it interacts with the key levels.
This is a scenario trade for those of you in Missouri!
With the market being comfortably above 300, and heading to 320, which being a round number is now an objective price target and the level for covering longs, if the mkt gets that high on an impulse.
So here is the thing. You might buy monthly put options on 310-315 range when/if the mkt reaches 320. The pullback is inevitable simply due to the above mentioned long covers that is to be accelerated by the amassing of the short positions on the same level. Anyway, we are likely to dive below 310 on a pullback, so your put options will yield.
If that is to happen, then the most likely support is 300. The mkt is unlikely to break this level, so the second part of the trade is to sell covered puts in the highlighted area below 300. Covered puts, because, safety first, and secondly, if the 300 lvl is broken, the closest real support is at 280 only!
You might play both trades or do just one of them. Watch the mkt and how it interacts with the key levels.
This is a scenario trade for those of you in Missouri!
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