2016/02/25 SPY Options Wrap Up

SPY had strong reversal yesterday and kept going up.

SPY 5m

SPY finally broke out 195.50 line.

SPY OK 02/26

SPY DWV

At this moment, we don't know those call buying were Buy to Close or Buy to Open. If those were B uy to Open, this rally will be short living.

2016/02/22 SPY Options Wrap Up

SPY gapped up this morning and stayed in the range between 194.50 and 195.50.

SPY 5m

Open Interests suggests there is a big resistance around this area.

SPY OI

As we wrote yesterday, this resistance area is too obvious. Bulls will try to make a break out while bares will sell to the highs.

SPY DWV

 Call buyers were active again today and maybe the bus is full. Unless those calls are sold for profit taking, SPY will be heavy. I expect a small pullback tomorrow.

2016/02/19 SPY Options Wrap Up

SPY Open Interest 02/26

SPY Dollar Weighted Volume 02/26

OI is skewed to call side this coming week. As we pointed out on Thursday,  there were huge call selling specifically 194.50C and 195.50C and those area could be the first resistance, however, I think this resistance could get broken to the upside.

SPY 194.50 is the February high, 50SMA level, and SPY 195 is half point between December high and February low. It's logical level for bears to set as reversal level but I think it's too obvious.
 

2016/02/18 SPY Options Wrap Up

SPY was flat today and it was very boring.

SPY 5m

SPY OI 02/19

SPY Dollar Weighted Volume 02/19

Call buyers were active for 02/19 and they need to take profit quickly if SPY goes up tomorrow and that's the way how pinning works. I believe SPY will pin between 192 and 193 tomorrow.

SPY DWV 02/26

SPY Big Options

There were huge 194.5C sellers this morning and we need to keep eyes on those trades. They sold more than 44000x194.5C at $1.25, that means they don't think SPY would up 194.50 by next Friday.

Those charts are captured from OptionM8 App.

2016/02/17 SPY Options Wrap Up

SPY gapped up higher again and made a trend day.

SPY 5m

Now 20SMA is turned up and SPY is heading to 50SMA.

SPY Daily

RSI is still 50 so there is a plenty of room, however...

$SPX CVI

Climatic Volume Indicator is at 2σ level which is overbought in very short term, so....

It's no wonder there were lots of Put buying today. Everybody expects some degree of pullback. The problem is there are only two days for expiration and those put buyers have to react as quick as possible when the market goes south. I think the "pullback" will be very shallow.

Those charts are captured from OptionM8 App.

2016/02/16 SPY Options Wrap Up

SPY gapped up higher. There was a gap at 0.382 so I guess sellers tried to fill the gap then trapped. Notice the negative divergence.

SPY 5m

SPY OI 02/19

The sellers of 190P need to defend SPY 190.

SPY DWV 02/19

However we had a lot of Put buying today while SPY was at the resistance and I can understand those reversal bet.

SPY may have stretched too much so it would be healthy to have some degree of pullback. If SPY actually gets sold tomorrow and if we see more put selling (= profit taking), then it would be a good place to buy.

I still believe SPY will finish at or above 190 this Friday.

Those charts are captured from OptionM8 App.

2016/02/12 SPY Options Wrap Up

SPY gapped up on Friday and recaptured 5SMA with strong finish.

SPY 5m

SPY OI 02/19

Open Interest is heavily skewed to the put side, and we know that 190P was STO (Sell to Open). 

There were big put selling activities as well as call buying. Notice those 185.00C at 13:07:49 and 13:10:21. Those 12000 Calls are $338M bet and I would like to keep my eyes on it. I believe SPY will finish at or above 190 this week.

Those charts are captured from OptionM8 App.

2016/02/11 SPY Options Wrap Up

SPY gapped down once again then curved out the loss with beautiful positive divergence, but couldn't close the gap. It didn't even touch the 5SMA.

SPY 5m

$TICK

$TICK 1min shows there were heavy selling pressure <-1000 tick by 14:30, then the market switched to the buy side > +1000 tick. Those bears are preparing for exit? 

SPY OI

Now those 185P or 183P sellers are under pressure.

SPY DWV

However, there are plenty of new puts were bought before tomorrows expiration. Those puts are weak and they need to be sold quickly no matter of profit taking or stop loss. SPY would pin at 187ish area, IMO.

Those charts are captured from OptionM8 App.

2016/02/10 SPY Options Wrap Up

Another choppy day. SPY was rejected at 5SMA.

SPY OI for 02/12

SPY will pin around 188.5 on Friday, IMO.

SPY DWV for 02/12

There were more Put selling than Put buying today while Call buying outpaced Call selling. Those are bullish. Notice the spike after 16:00.

SPY Big Option Trades

Someone sold 1000x185.00P and bought 1000x188.00C.  This is a bullish bet and I would like to keep my eyes on it.

Those charts are captured from OptionM8 App.

2016/02/09 SPY Options Wrap Up

SPY gapped down (again) and choppy.

Good news: Higher high and higher low.

Bad news: SPY finished underneath declining 5SMA.

SPY OI 02/12 

SPY DWV 02/12

The market is already too short yet we saw high put/call ratio this week. Full Wagon Theory?

SPY DWV 02/19

On next week, we saw big put selling that could create support.

There were 8000x185.00P selling at 13:30:25 and it was almost $3M. There was another big 190P selling on 02/02, so I would say bottom may be in.

Those charts are captured from OptionM8 App.

2016/02/08 SPY Options Wrap Up

SPY gapped down (again) and sold off (again) this morning but rebounded in last hour.

SPY 5min

There was positive divergence and second dip was a good spot to buy, if you were a quick day trader. Now the gap is on the radar then 5SMA is the next target.

SPY OI 02/12

SPY DWV 02/12

SPY DWV 02/19

Those 183P and 185P were rejected today and it would be rational to test 190C and 191C by the end of this week.

Those charts are captured from OptionM8 App.

2016/02/05 SPY Options Wrap Up

I was bullish before Non Farm Payroll but obviously I was wrong. SPY sold off sharply after NFP and put sellers scrambled for delta hedge.

SPY 5min 

Now SPY sits under declining 5SMA and it's not a good sign for bulls. It is encouraging that RSI/PPO/PMO shows some degree of positive divergence.

SPY OI 2016/02/12

SPY's OI is skewed to Put side this time. It's been a while the market started to decline. Bearish articles are everywhere. Any charts look like head and shoulder. It's no wonder many traders loaded up with Puts. My question is... are those puts rewarded again?

I would like to  take @verniman's Full Wagon Theory this time. The bear's bus may be a bit crowded.

SPY DWV 2016/02/12

SPY Options Big trades 

While the market kept declining on Friday, big option traders were buying up Calls, and after market closed, someone bought 10000 of SPY 02/12 191.00C. This is a $1M bet, and I'm biased to bull side this week.

Those charts are captured from OptionM8 App.

2016/02/04 SPY Options Wrap Up

SPY was basically flat today.

From the OI chart, it looks like SPY is pinned. But it's unlikely because Non Farm Payroll is waiting. The movement would be big.

SPY DWV 2016/02/05

SPY Big Options Trade 2016/02/05

Note there were big 197.00P selling as well as big 192.00C buying just before the market closed. I would say those are very bullish bet. Are they going to nail Non Farm Payroll tomorrow morning? We will see.


Those charts are captured from OptionM8 App.

2016/02/04 SPY Options Morning Briefing

Open Interest for this week:

Open Interest for Monthly options:

There are more 190P than yesterday so I would say yesterday's 190P buying was BTO.

Dollar weighted volume for this week:

I can see only Put selling which is bullish.

DWV for next week:

It's mixed so I don't have anything to report here.

DWV for monthly:

Calls are actively traded and I would like to keep watching to see if there is bullish development.

Those charts are captured from OptionM8 App.