I'm glad to see there isn't any sign of bears hanging around on this board so far today and I hope nobody gets trapped.
Judging from market movement up until this minute, there should be higher high ahead for next day or so. MAD is one of those indications. So, I consider shorting here is a dumb move because it's a high risk trade.
Best strategy for now? BTFD.
Options activity suggests a solid sign that SPY might reach above 213 before this Friday. Again, this is just for speculation.
If my calculation is right, stock options traders (sophisticated ones) are expecting SPY to hit ~214.23 by Nov-16 (i.e. next Wednesday). Why am I choosing Nov-16? Because of lowest Implied Volatility.
With US election takes place tomorrow night, any direction is possible. So, be careful to hold any position by then.
Hutong9999 发表于 2016-11-7 06:05 PM
214.23 is calculated similar with max pain? thanks!
My calculation is totally different than max pain formula. For example, max pain formula suggests the target for SPY by this Friday is ~212.50, while mine is ~214.23.
As per today's options activities, many speculators are suggesting SPY will close at ~210.00 by this Friday.
Let's see.
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What is interesting is that below max pain chart (with yesterday data) suggests low interests among call & put sellers for this Friday expiration once SPY trades above 213.
狗仔卡
发表于 2016-11-7 10:42 AM
提升卡
置顶卡
沉默卡
喧嚣卡
变色卡
发表于 2016-11-7 11:21 AM
