August 18, 2017

Time For a Few More Bear Call Spreads (SPY)?

Today's price action had the bears extremely excited for most of the day. While most experienced traders expected some support at the 1400 level I am not sure that anyone was expecting the bounce that we witnessed during the latter part of the day. I am still somewhat bearish. My thought is that we will eventually see the two SPY gaps (11/19 and 11/29) from November close over the coming month. But as we all know there are no guarantees. No one holds the holy grail to trading. Which is why I always make trades with a margin for error. Credit spreads allow me this benefit...and since I have a short-term bearish view a bear call spread is my strategy of choice. What is Bear Call Spread? A bear call spread is a credit spread … [Read more...]