I AM NOT ENTERED IN THIS BEARISH POSITION...YET. I will update with possible entries this morning after reviewing chart ideas. Entry updates will be made at once on all charts when applicable.
Chart Details Reversion to the mean 10WeekMA - SPY would be $310 or below. Lots of gaps to fill down to $295. Very good profit potential for options entry. Price has potential to correct down to blue line - long term support. Watching RSI trend breakdown as one key indicator for entry.\ Bearish EMA cross below $320 Daily candle close should get us over the hump - going down. Will update later to confirm.
Entry Options We have large liquidity and high downside risk. Since things are uncertain, I see two options. 1 - No risk. No reward. Wait until Jan 1 to see if things go down, or continue up. 2 - Enter small size call credit spread for bearish SPY or anything else bearish like AAPL possibly by next Tuesday. Market is closed on Wed. 1/1/2020. By 1/2 either we get right/lucky or get screwed out of max 200ish. I will need to find exact specifics of entry after reviewing charts.
About Me Thank you for liking, commenting, throwing up a chart, following, or viewing. I am not a financial advisor. My comments and reviews are based on what I do with my personal accounts. I am transitioning to my new website moneypatterns.com and will be updating my username here. Same guy - new name. :) Website will be ready for launch mid-January 2020. Thank you for your patience while I try to juggle everything and maintain the same standards. Disclosure - I am long BTCUSD, GBTC.
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Possible Options Entry: Enter next Monday/Tuesday Jan 17 expiry. Call Credit Spread. 321/324. $196 Credit. $103.68 max loss. This entry implies that if SPY is below $324 and $321 by 1/17/2020, max credit $196 is kept. Only thing - this entry each leg odds are 36% and 50%. LOW. May change next week or this is just riskier trade. Note - the 321/324 spread has greater payout than 321/326 ($5 spread). 97,000 open options contracts for the 321/324. Someone knows something.