SPY option analysis: week of 20170109

Last week, I wrote a bearish tone of article but obviously I was wrong. The turning point was Wednesday when 0106 SPY 227C started getting squeezed. I usually follow those big option traders but they are not always correct, and once their bets go wrong, the market moves quickly because they need to wind up their big positions.

SPY OI Wednesday

The market would be quiet by Wednesday as price base OIs are small. If there are any battle between bears and bulls, then SPY 227 is a good level as both of call and put are net long at this price, but positions are small so don't expect a big battle.

SPY OI Friday

Friday expirations are slightly bigger than Wednesday, but again those are small and I can't say anything at this moment.  The earning season starts Monday kicked of by AA, but we need to wait for a week to many earning reports kick in, then Trump will officially start his job in the Whitehouse. Do we see another "Buy the rumor Sell the news" thing?

I would stay away from the market this week. Happy Trading.

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