SPX Weekly Analysis
Updated
SPX has made up all of its losses from the last pullback as it is back at its ATH again. SPX will most likely continue to make smaller moves to the upside for the next week. While I have a slightly bullish bias for the next week, its going to be a theta crush for option buyers. 1SD-2SD OTM Credit Spreads in both the call and put sides collecting at least a third the width of the strikes can anticipate decent profits.
Bullish price targets by EOW: 3980-4030. I think the odds of SPX breaking 4000 is slim, considering its a round number and history on difficulty breaking odd numbers not only for SPX, but also other indices such as the NDX and DJI as well.
I also don't think the market will go below last weeks closing price by end of this week so going with an ATM Put Credit Spread and/or OTM Call Credit Spread above the 4000 level.
Bullish price targets by EOW: 3980-4030. I think the odds of SPX breaking 4000 is slim, considering its a round number and history on difficulty breaking odd numbers not only for SPX, but also other indices such as the NDX and DJI as well.
I also don't think the market will go below last weeks closing price by end of this week so going with an ATM Put Credit Spread and/or OTM Call Credit Spread above the 4000 level.
Trade active
Short the 4050-strike Call 2 DTE expiring 3/19 for $2.05 Cr. 92% OTM BUT 72.5k BPE.Note
Update: 100% Profit on the naked short call as it expired worthless.
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