Last week here I outlined the levels of high puts and calls that would likely act as support or resistance respectively. I also mentioned the possibility of a 270 SPY pin for Wednesday. Although the price action Wednesday morning was tricky to see 270 was still a possibility, if you were looking for the correct things you could have anticipated a pullback was very likely as I did with members of SassyOptions.
If you have not yet subscribed to my weekly freebie you can do so below to get next weeks free trade idea sent to your mailbox Monday morning. Last week was BABA and it was a winner. In SassyOptions premium with real time alerts we took BABA calls from $1.44 to $2.55. It wasn’t a grand slam, but given last weeks non trending environment I consider that pretty good. The stats for the weekly freebie since I began sending them are as follows :
- 6 wins (I only count wins when they are big wins).
- 1 that didn’t trigger
- 3 scratch trades
- 1 loss
Open Interest: If you want more information on how to read the high calls and puts in the open interest see here.
SPY-M: Yes there is now a Monday expiration. For now I will display it and comment, but I may eventually take my commentary private on this one as I share a lot of free info as is. For now though it’s available so enjoy.
(0 of 0 pins). We obviously have no data yet as to what kind of pinning we will get, but I will start tallying it up to see if it’s helpful information. Currently the best pin for Monday is around 273. There is good put support at 272 and 268 and some call resistance at both 273 and 275. Should SPY open above 275 (or quickly get above it) on Monday and not stall then it is proving strong enough to hold over the calls and will likely continue to push even higher with no call resistance. An open between 273 and 275 (or a drop under 275) and it may stall until after Monday’s expiration.
SPY-W: (55 of 76 pins). Wednesday’s expiration has put support at 268 and call resistance at both 280 and 286. The current best pin is 275, but it’s not very prominent and can easily shift as the week progresses. For now I would assume that any pullback to 268 will be bought and any push toward 280 will be sold (at least on the first try). Should price breakthrough either strike on a second try then it will likely get through. If that is to the upside then there is no call resistance again till 286.
SPY-F: (45 of 69 pins). There isn’t much to see here except good put support at 268/269 which also supports the idea that any pullback to that area next week is a buy. There is small resistance at 280, but not enough to stop a very strong market. This open interest may shift as the week progresses especially if there is a decent amount of price movement.
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Wednesday 2/21: Successful pin.
Friday 2/23: Successful pin.