The Market Looks Bullish at first
SPY Price Projection and Option Strategy
Current Market Overview
Current Pre-Market Price: US$596.39
Last Close Price: US$595.36
Technical Analysis: The technical indicators for SPY suggest a cautiously bullish outlook. The breakout from the Falling Wedge pattern indicates a potential upward movement towards the resistance level at US$594.22. Oscillators show a bullish sentiment, while moving averages present mixed signals with short-term averages indicating a sell and longer-term averages showing some bullish potential.
Option Expiry Dates for This Week
07-Jan-2025
08-Jan-2025
09-Jan-2025
10-Jan-2025
Option Chain Metrics
Put-Call Ratio: 0.56 (for 28-Feb-2025 expiry)
Max Pain: US$525.00
Highest Call Open Interest (OI) Strike: US$635.00
Highest Put Open Interest (OI) Strike: US$480.00
Recommended Option Strategy for a 50% Gain
Given the cautiously bullish outlook and the current market structure, here are some single-leg option contracts expiring this week that could potentially yield a 50% gain:
Long Call Option
Stock Symbol: SPY
Signal: Bullish
Option Strategy: Long Call
Strike Price: US$600.00
Expiry Date: 07-Jan-2025
Current Price: US$596.39
Buy/Sell: Buy
Call/Put: Call
Premium: US$0.28
Stop loss: US$0.25
Take profit: US$0.42 (50% gain target)
Implied Volatility: 13%
Rationale: The option is out-of-the-money (OTM) with a bullish signal, aligning with the cautiously bullish market outlook.
Long Call Option
Stock Symbol: SPY
Signal: Bullish
Option Strategy: Long Call
Strike Price: US$602.00
Expiry Date: 10-Jan-2025
Current Price: US$596.39
Buy/Sell: Buy
Call/Put: Call
Premium: US$1.00
Stop loss: US$0.90
Take profit: US$1.50 (50% gain target)
Implied Volatility: 13%
Rationale: This option is also OTM with a bullish signal, and the premium is positioned for a potential 50% gain if the market moves favorably.
Current Market Overview
Current Pre-Market Price: US$596.39
Last Close Price: US$595.36
Technical Analysis: The technical indicators for SPY suggest a cautiously bullish outlook. The breakout from the Falling Wedge pattern indicates a potential upward movement towards the resistance level at US$594.22. Oscillators show a bullish sentiment, while moving averages present mixed signals with short-term averages indicating a sell and longer-term averages showing some bullish potential.
Option Expiry Dates for This Week
07-Jan-2025
08-Jan-2025
09-Jan-2025
10-Jan-2025
Option Chain Metrics
Put-Call Ratio: 0.56 (for 28-Feb-2025 expiry)
Max Pain: US$525.00
Highest Call Open Interest (OI) Strike: US$635.00
Highest Put Open Interest (OI) Strike: US$480.00
Recommended Option Strategy for a 50% Gain
Given the cautiously bullish outlook and the current market structure, here are some single-leg option contracts expiring this week that could potentially yield a 50% gain:
Long Call Option
Stock Symbol: SPY
Signal: Bullish
Option Strategy: Long Call
Strike Price: US$600.00
Expiry Date: 07-Jan-2025
Current Price: US$596.39
Buy/Sell: Buy
Call/Put: Call
Premium: US$0.28
Stop loss: US$0.25
Take profit: US$0.42 (50% gain target)
Implied Volatility: 13%
Rationale: The option is out-of-the-money (OTM) with a bullish signal, aligning with the cautiously bullish market outlook.
Long Call Option
Stock Symbol: SPY
Signal: Bullish
Option Strategy: Long Call
Strike Price: US$602.00
Expiry Date: 10-Jan-2025
Current Price: US$596.39
Buy/Sell: Buy
Call/Put: Call
Premium: US$1.00
Stop loss: US$0.90
Take profit: US$1.50 (50% gain target)
Implied Volatility: 13%
Rationale: This option is also OTM with a bullish signal, and the premium is positioned for a potential 50% gain if the market moves favorably.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.