Day 45: Credit Spread Sept Expiration
This is for my Credit Spread (cash flow) students. Potential trading.
The overal market:
- Over Market economy is generally good. Some scare about delta variant.
- SPX January Barometer, mostly sideways. Actually 50 points up. So this should be an up year.
- 200/50 up trending. Broke the 50 day moving average.
- 30/10 down trend.
- Chart. Sideways. BUT look at the M (double top) pattern, with maybe the kiss good bye?
- Support 2200, Resistance 2250. She is getting ready to break out one way or the other.
- Candlesticks. up patterns. penetrating.
- Look at the following positions on paper (test). VPut about 1850 and VCall above 2500 (50 point spreads–therfore 1.50 min).
- Paper filling below VPUT 1850. for example 1850/1840 for 40 cents. VCALL 2500/2550 for 1.85. my 1830/1840 at 30 cents is not filling
Looks like:
- Filled at VPUT at 1840/1850 for 35 cents. Filled VCALL at 2500/2550 for 1.85 cents (5 times, 30-40 cents in 1.50 to 2.00 on a 50 spread).
- M pattern. A double top. And what looks like a kiss goodbye. Could drop from here. But not an absolute.