I just posted this thread but for some reason I don't believe it showed up. Anyways I was wondering who all has set up or is planning on setting up option positions for earnings season on the SPY or SPX? I have been debating on it for the past couple days. I am still trying to figure out where I think we are going. I have been thinking nowhere but down for the long term for the past couple months but now I am not really sure. What is everyone else's opinion?
Did you set up a spread? I am new to trading SPX and SPY and don't know which I would prefer to trade. Any suggestions on why one over the other?
i am biased lower in st due to open gap from 6/29- but since the market never does what is readily or obviously expected I have long positions (short puts/spread - SPY) so that if it rallies I will try to exit with +$. I am also + SDS; +Aug 14c, - Aug 16c - Aug 16p +Sept 15p (on SDS) legged into all pos.
Just look at the jobs report. Assume that if companies were doing well they would be hiring like mad. You do the math.
I read all the bad news just like everyone else, and sometimes also feel the "End of the World" is near. But if you tune it out and only look at SPY's long term chart, the Uptrend is still in place. If it goes above 141.48 we'll have a new higher high, and are only 5% below that now. As to trading the SPY, I think selling 127/126 Bull Put Spreads, which break even right about at the last higher low of 126.48, is safe enough.
As always, it's anybody's guess on direction. I'd rather play earnings (vol) through individual names.