Let’s see how a trader with 35 years of experience, me, would approach these opportunities.

When trading Price and Volatility are the two biggest factors

For SPX or the S&P 500 Trust ETF (Ticker: SPY), looking at the volatility curve in SPX helps a lot but there is also a strong cause and effect trade with the  big indexes and VIX.  On Friday in Weekly Profit Cycles I put out this for an off cycle trade:

Buy to open 1 SPY Oct04 520 puts

Buy to open 5 VIX Oct16 18 puts for about $1000 per spread.  I count both parts of the pair as a spread.

Basically 2 bets, the SPY goes down or if it does not in a week or two, VIX will.

WMT I would look this week to sell put spreads if the IV pumps up and I can sell to where the price was before earnings.  I want to sell put spreads below $70 for at least 20% yield to expiration on the spread.

WBA needs to find a bottom and rally 10% from it.  The risk reward favors buying for a 1 year out or more.  I need to see the bounce first and some evidence of a turnaround or end to the write offs on health clinics they bought.  I like it when I see some Big Money buying calls too, that does not hurt.

I would say trading in SPY but investing in names is a good recipe, as one idea is a natural hedge for the other.

Taken together in the products I manage, CapGains, Weekly Profit Cycles. Pro and Trading Desk I should be able to close a win in an up or down market every day or close to every day.

That is the way it is supposed to work.

To Your Trading Success,

AG