Given the fact that /ES, SPY, SPX500 continue to conform to the downward sloping yellow channel, I'm looking to continue to short on meaningful retraces of price, ideally to the upper bound of the yellow channel, since I think this offers the best risk-reward here. I can do this one of several ways, for example, by entering a GTC order to short /ES, SPY, or SPX500 if price strikes that upper bound (currently around 2075). An alternative way to short via options is using a debit spread set up broken across that upper bound -- a SPY 207/210 or SPX 2070/2100 long put vertical.
Currently, that spread is priced at a 1.73 ($173) debit for the SPY spread, but I don't want to pay that. As price moves toward the spread, it's price will decline. Given the fact it's a three-wide, I want to ideally only spend something like 1.00 ($100) on that spread, so I'll set up a GTC order for a 1.00 fill for this coming week and go from there.
Notes: As you can see from my posts, I'm largely a premium seller, so my go to strategies are generally credit spreads. With SPY's implied volatility being somewhat low here (it would go even lower on an upmove), premium selling isn't that great here, so I'm looking for a small position alternative over entering a comparatively buying power heavy short /ES position ... .
Currently, that spread is priced at a 1.73 ($173) debit for the SPY spread, but I don't want to pay that. As price moves toward the spread, it's price will decline. Given the fact it's a three-wide, I want to ideally only spend something like 1.00 ($100) on that spread, so I'll set up a GTC order for a 1.00 fill for this coming week and go from there.
Notes: As you can see from my posts, I'm largely a premium seller, so my go to strategies are generally credit spreads. With SPY's implied volatility being somewhat low here (it would go even lower on an upmove), premium selling isn't that great here, so I'm looking for a small position alternative over entering a comparatively buying power heavy short /ES position ... .
