I trust you are all doing well!
What we are looking at today is actually a little bit of a continuation lower next week on the SPY. The implied volatility is not going to be as high as you would expect because this is the SPY.
But… we are going to play off this nice evening star reversal forming, it really is shaping up nicely. Also, I love the lower shadows forming here on the SPY charts.
So basically we are looking at buying a 275 put option here.
If you watch the full video above, I actually break down the exact step-by-step analysis along with the specific order and stops I am using so you can follow along.
Remember, when the market sells off this fast, you have to be a little more quick and nimble to make any substantial gains.
That said, I really do like these candles and shadows so this is what I am thinking on the SPY at the moment!
Be sure to watch the full video for a more substantial breakdown!
Until next time… Live life, love life, and trade it!