SPY rangebound between $580 and $600SPY has been pretty rangebound between $580 and $600 since November. Any time it drops near $580, buys have pounced, and whenever it goes near or above $600, sellers pounce. I think we'll continue to see more of this well through January and into February until we get a better sense of macroeconomic factors like Fed as well as global policy from the incoming Trump administration. The Fed and Panama Canal are the top two things that I'm watching.
Some swing trade ideas:
Iron Condor options strategy keeping $580 and $600 in mind. With Vix being at 18, this isn't a bad trade, just keep in mind that volatility can expand making OTM strikes still be unprofitable.
- I don't think a strangle is a good idea, make it defined risk.
Wait it out. This is my current strategy with SPY showing a head and shoulders pattern with a possible target near the 200 EMA.
Put Ratio: Something like a 112 or 1122 might not be a bad idea keeping the 200 EMA in mind with the 200 EMA in the "trap" zone.
