BY MARK SEBASTIAN
March 6, 2025
Hey Traders,
The S&P 500 had a really nice turnaround on Wednesday.
But the volatility remains.
Check out the daily ATR in SPX right now:
ATR is now the highest it has been since August of 2024.
We run into the problem of being TOO right on our moves.
By that I mean … we set the Cash Zone for a rally and the market rallies too hard, or we set a bear Cash Zone and the market falls too hard.
Believe it or not, this is a great spot to just buy XSP calls or puts because of how hard the market can run.
Look for Licia or me to send some XSP your way (if you’re a 0DTE member).
Or you can trade SPY with Voz and Game Plan.
First, Let’s Recap Yesterday’s Trade
No trade.
By the time I went to go long, the market had already taken off.
This move was really, really quick and stopped basically where the market closed.
But is there room for a trade today?
…Today’s Outlook
The S&P 500 closed over the 150 DMA.
This either is a floor, or Wednesday was a head fake and things fall apart fast.
I do not have any idea what is going to happen until around 1:30 ET – expect a trade after that.
Call Ted if you aren’t currently a member – 888 872 3301.
Your Only Option,
Mark Sebastian
Mark Sebastian
Founder & CEO, Option Pit
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CAPITOL GAINS: SMR Aug16 7 call closed for a 150% gain
DELTA STRIKE: VLY Mar15 8 puts closed for a 88% gain
PFE May17 26 calls closed for a 66% win
OP MENTORING: SPY Mar22/19 510 put calendars and 520 calls for 6.4% gain
OPTION SHOPPER: ERX Mar28 65 calls closed for a 90% gain