Check out my replay of the MARKET SURVIVAL SUMMIT and learn how to trade in a bear market. Don’t forget your survival gear!
Elsewhere, the Fed is now leaking rate hikes.
Somehow the powers that be decided to let the market know what was up ahead of time like an old fashion gossip network.
Spill that tea, J-Pow!
Well, yesterday stocks like what they heard.
Today they don’t.
It is going to be like this for a while.
Is the SPDR S&P 500 Trust ETF (Ticker: SPY) telling a story?
Let’s look for the opportunity.
The Straddle Tells the Story
On the close yesterday, the SPY June 29 378-strike straddle (that’s the call call and put) was $17.
From the opening move this morning, SPY will have moved more than half of that already since the close. The big tell will be if the 370 straddle can maintain its value through the day.
It is clear SPY can still move and the next FOMC meeting is not until later in July. The stock market is getting the rate picture clearly now from the Fed and volatility will be a key in measuring how traders accept it.
I still expect volatility to subside this week but the staddle values have to come down if the market is actually buying the idea of lower volatility.
My first trade in my new SPY Master program is out next Wednesday. (And there’s a trade every Wednesday after that). Volatility is part of the equation. Be there for the opportunity to profit.
The Rundown
Pro Chat Room
Kiran grabbed what he could on an OPM trade:
Power Income Trader
Griff closed some VIX June 15 24/26 call spreads for a 30% gain
To Your Trading Success,
AG