Option Strategies: XYZ& .SPX

Selling For Premium
02-21

Hello everyone! Today i want to share some technical analysis with you!

1.

MOPEX closes out tomorrow and that 6100 gamma level on $S&P 500(.SPX)$ is the biggest stack. Would not be surprised to see MMs pin tomorrow's closing price at 6100.

Just like today, we'll be targeting the 6000 put strike and 6150 call strike to write credit spreads on ... Iron Condor style! Will see how the market opens tomorrow and make a decision at that time.

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2.

$S&P 500(.SPX)$ Iron Condor trades expired worthless for max profit. Just shy of $1K. 🤑

Sold far OTM strikes that had a high probability of not getting breached. Didn't even have to watch the position that closely today. Love it when we get volatility at the open!

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3.

Gonna trade $Block, Inc.(XYZ)$ for earnings tomorrow. Looking to pick up shares.

Here is the #Optionselling trade plan:

▫️ Sell-to-open Feb 21 expiry, 70 strike puts

▫️ Sell-to-open Feb 28 expiry, 65 strike puts

Points to consider:

▫️ Expected move is ~9% with lower bound at 76 and upper bound at 91 (keep in mind that earnings moves typically tend to be bigger than expected move)

▫️ Volume point-of-control at the 65 level

▫️ Consolidation level with accompanying volume support at the 72 level

▫️ Gamma structure shows more call positioning at 90 and above, but there is put positioning at 80

▫️ That said, the market seems to be in a "sell-the-news" mode for earnings good or bad

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Comments

  • Raae
    02-22
    Raae
    Thanks for the write up, looking forward to your SPX selling strategy 😍
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