Below is a daily chart of SPDR S&P 500 ETF (SPY).
Trade: Consider one of two trades: (1) shorting Oct (10/27) $256/258 bear call spread (8 DTE) for a limit of current mid-point of $.44/share or better; or (2) buying Oct (10/27) $257.5/252.5 bear put spread (8 DTE) for current mid-point of $2.27/share or better. #2 is a more directional bearish trade with higher profit potential, but higher loss potential.
Technical Setup: Bearish Gap from rising extended wedge on daily chart.
Option Strategy: Bear Call Credit Spread (BCS); Bear Put Spread (BPS)
Stop Loss: $256.12.
Happy trading! If you have any questions or comments, please e-mail Greg Capra at Greg@mastertrader.com or Dan Gibby at Dan@mastertrader.com
All the best,
Greg Capra
Managing Director of Master Trader
Pristine’s Founder and Creator of the Pristine Method
Dan Gibby
Chief Options Strategist
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