Trading Edge 2020 Portfolio -Trade #10- SPY - Another Leg Down?
Ticker: SPY
Position:
~ May 15th expiry
~ $275 Strike Put (looking to book an order for $10-$11.00, since the futures are looking to be up)
~ Delta = 0.50
~ Run 1x contract
Exit/ Profit targets:
~ Close above the swing high $287.50 = exit the trade
~ Initial target = $261.23 (38.2% fib)
~ Secondary target = $253.04 (50% fib)
Rationale:
~ Bearish MACD cross on the daily
~ Price appears to be stalling within the moving average bands (particularly the 55 and 89)
~ Potential RSI rejection at the 60 mark (typically acts as a line between bullish and bearish)
~ Overall market condition is still weak, this appears to be the relief rally that i considered in my prior analysis (although i am open to a melt up scenario)
P.S. I will also be watching WES for a potential inverse H+S pattern
-TradingEdge
Position:
~ May 15th expiry
~ $275 Strike Put (looking to book an order for $10-$11.00, since the futures are looking to be up)
~ Delta = 0.50
~ Run 1x contract
Exit/ Profit targets:
~ Close above the swing high $287.50 = exit the trade
~ Initial target = $261.23 (38.2% fib)
~ Secondary target = $253.04 (50% fib)
Rationale:
~ Bearish MACD cross on the daily
~ Price appears to be stalling within the moving average bands (particularly the 55 and 89)
~ Potential RSI rejection at the 60 mark (typically acts as a line between bullish and bearish)
~ Overall market condition is still weak, this appears to be the relief rally that i considered in my prior analysis (although i am open to a melt up scenario)
P.S. I will also be watching WES for a potential inverse H+S pattern
-TradingEdge
Trade closed: stop reached:
Exit SPY Put for $2.13/ contract
