BY LICIA LESLIE

July 28, 2023

Hey Shoppers,

Check out my SPDR S&P 500 (Ticker: SPY) pitchfork:

Yesterday, SPY touched my resistance level and made a complete reversal creating a large bearish engulfing candle.

I think SPY will pull back to the $445 level.

It won’t happen in one day, at least I don’t think it will.

So, I am checking out the Aug18 puts:

The 452/442 put vertical for around $2.25 would be a nice play for the downside.

You have 21 days until expiration.

The at the money 452 put that you are buying is trading an implied volatility of 10.89 and the 442 put that you will sell has an implied vol of 13.21.

That offers a nice edge in the spread.

A ten point spread for just over $2.00 is a good deal, also.

Use a close over $456 as your stop loss.

Trade Review

I am still watching Cleveland Cliffs (Ticker: CLF) to trade over $18 to hop into calls on the long side. Hasn’t happened yet so no trade.

Apple (Ticker: AAPL) still no close over $195. I say looking lower. Also, it had a large reversal bearish engulfing candle yesterday.

Thanks for Reading … See You Next Tuesday,

Licia Leslie