Outlook
Our outlook is consistent from yesterday. FOMC might make some turbulences but the dip will be bought unless the sell off is very strong.
SPY today
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| SPY 5m |
SPY gapped down a bit, then grinding up but couldn't close the gap. Volume was low bur SPY is still above rising 5SMA, which we think bullish.
CVI/STVO/VTO and trends/overbought/oversold
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| $SPX CVI |
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| $SPX STVO |
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| $SPX VTO |
CVI suggests there is no momentum in very short term. STVO suggests $SPX is still bullish in short term. VTO is still overbought territory but we think $SPX could stay overbought as we explained yesterday.
SPY Options OI and Dollar Weighted Volume
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| SPY OI 03/18 |
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| SPY DWV 03/18 |
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| SPY DWV 03/24 |
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| SPY Big Option Trades |
There were relatively big Put trades between 12:22:55 and 12:34:38. As you can see the trade records, those would be put ratio spread where 205 leg is short and 202 leg is long. This is slightly bullish position where SPY 204ish is max profit, 205 and higher is limited profit, and below 202 is unlimited risk. If SPY goes under 202 by Friday, this trader has to sell SPY for delta hedging, but the magnitude would be limited because of the size of position.
Anyways, it's always fun to watch such weird option positions, don't you guys think so?
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