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.