Wrap up
OptionM8 app is not a price prediction tool, but user can predict a price reaction from the option market itself. We had a typical example in SPY options today.
 |
| SPY OI 20170111 |
Yesterday, SPY closed at 226.46. You can see 227C was net long from the 3rd row of the charts. SPY popped up this morning and 227C went to ITM.
 |
| SPY 20170111 227C Daily |
From the daily chart, 227C closed below VWAP 0.60 level yesterday, which means average long holders were under water, therefore, it would be rational to expect those long holders would close the position at VWAP level, 0.60.
 |
| SPY 20170111 227C 5min |
The intraday chart shows 227C reversed at 0.60 level.
 |
| SPY 29179111 227P 5min |
Of course 227P had a good swing trade opportunity today.
You can see this trading strategy on our short introduction
video.
Trade ideas for tomorrow
 |
| SPY OI 20170111 |
SPY didn't change much today, but OI did. Actually 226P was bought relatively big today.
 |
| SPY 29170111 226P |
Most of those 226P was bought today at 0.2 level, ant VWAP is around 0.4. Those 226P holders may hold the position even after the price exceeds VWAP, because puts are too cheap now. Do you set stop-sell for lottery ticket? I don't.
I'm slightly bearish here.
No comments:
Post a Comment