Last week here I gave you the SPY parameters for both Wednesday and Friday (and updated them over twitter). What you did with them I have no idea, but they worked well (see below for last weeks pin information). For newbies to open interest, knowing where SPY won’t go is often just as valuable as knowing where it will go.
SPY-W: (37 of 46 pins since Wednesday expiration inception).* The current best pin for Wednesday is 247 with call resistance at 249/250. For the most part though price has a lot of room in both directions and really the only thing that sticks out is the high puts at 240 (at least we know if the market gets an early week crash where to buy). Minus that, it’s not super informative yet, but perhaps will become more defined as the week progresses.
SPY-F: (30 of 40 pins since I began tracking Friday’s). The current best pin is between 245 and 246 with clear call resistance at 246 and put support (but a lesser amount) at 245. This definitely can shift throughout the week, but at the moment it suggests that bulls should expect a pause at the very least and perhaps a further pullback if price gets below 245. If price does get over 246 and those calls remain in the open interest by the end of the week then be very cautious as it could lead to a market smackdown.
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Wednesday 7/26: Successful pin.
Friday 7/28: successful pin.