BY MARK SEBASTIAN
March 28, 2025
Hey Traders,
Movement is actually falling in the SPX, which tells me we are near a bottom.
However … that doesn’t mean we rally. We could be stuck here in a range for weeks while the Tariffs work themselves out.
With the VIX higher and a potential range bound market … you know what’s perfect for the next few months? Triple Income. Why? We are range bound – and options prices remain high.
If you missed the discussion between Hannah and Hans last night, check it out here. It’s worth your time.
Despite the small sell off, VIX remains in contango, which is interesting.
We get one more rough day and things will start to flip. But for now, the market is not overly concerned. Interesting times we are in.
Let’s Recap Yesterday’s Trade
If you missed yesterday’s session … what are you THINKING! Licia and I broke down levels, shared a master demo on how to build a butterfly for a credit, and discussed what we have in the pipeline. Members can watch it here.
Thursday’s action was mostly inside. The best 0DTE trade would have been an iron condor, not a fly.
We would have wanted to play the S&P 500 staying in a range, not setting a target. I’ll discuss it next Thursday.
…Today’s Outlook
PCE came out at 8:30 a.m. ET – that’s going to be a market mover.
Watch to see if the S&P 500 moves back over the 21 DMA. I know things have been shifty, but if we are over the 21 day after 2 p.m. ET … we are going to rally.
On the flip side, if the S&P 500 drops, look for a test of the previous low. We will have an XSP trade for you if that happens.
Call Ted if you aren’t currently a member – 888 872 3301.
Your Only Option,
Mark Sebastian
Mark Sebastian
Founder & CEO, Option Pit
See what's hot at option pit
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