Last week here I showed the several SPY open interest expirations and unfortunately they weren’t as helpful as some often are; however, they were able to express the possibility of a rangebound market between of 270 to 275. Although traders likely wanted to see more out of last weeks market, the range did in fact hold true to the open interest.

If you have not yet subscribed to my weekly freebie you can do so below to get next weeks free trade IDEA (not alert – if you want an alert you need to be a subscriber) sent to your mailbox Monday morning. Last week was AMZN, but it never triggered. 

The stats for the weekly freebie since I began sending them are as follows:

  • 12 wins (I only count wins when they are either big wins or where there was enough time to take profits).
  • 3 that didn’t trigger
  • 4 scratch trades
  • 1 loss

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Open Interest: If you want more information on how to read the high calls and puts in the open interest see here.

SPY-M: (7 of 12 for pins since Monday expiration inception).* The best pin for Monday is between 271 and 273. There is pretty good put support at 270 and call resistance at 273. If price is actually able to hold over 273 then it would have room to 275 before facing another set of high calls. 

SPY-W: (65 of 88 pins since Wednesday expiration inception).* The current best pin for Wednesday’s expiration is 270-271, but there is definitely time for this to change between now and then. Furthermore, if price is able to hold over 270 and especially over the 271 calls as well, then there is no resistance above in terms of the open interest (of course there is technical resistance). If price gets below 270 then the only put support is all the way at 260 so there wouldn’t be much in the way of puts to help hold things up (although the Friday expiration does have high puts). 

SPY-F: (51 of  81 pins since I began tracking Friday’s).* As of now there is no perfect pin for Friday’s expiration, but instead a large range from roughly the 268 puts to the 278 calls. This will very likely change as the week progresses, but for now we can view 268 as decent support and 278 as resistance. 

Pinning Stuff:

*An explanation as to how I define range pinning can be found here. More information about what pinning is can be found under the education section or here.

Monday 5/12: Failed to the upside.

Wednesday 5/16: Failed to the upside.

Friday 5/18: Successful pin considering there really wasn’t any perfect pin, but more of a range.

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