VIX6 – SPX Trade #5

 

Market Context

Good day Insiders,

This market has been able to hold above 2900 for well over the past week, though I am of the opinion that there is more hot air out there than ever before. In the recent past, even bad news could not cause this market to fall. If was as if the good news was good news and bad news was… well good news. The SPX is 11 points away from its intraday all-time high from last October when Fed Chair Powell cause the months of reckoning. Price action seems to be telling the tale that the music is likely to stop or at least be put on pause. In the opportunity of taking advantage of time decay over the weekend, we will execute the following trade.

The Trade

The SPX is trading at 2930 and using the sale of this 2970-2980 call spread will look to take advantage of us seeing a pullback. **The only way I do not execute this trade is if we are likely to close the week above 2939 in the SPX.** 

Risk & Reward

Our trade will use $8,750 in margin and so long as close below 2970 by next Friday, May 3rd, we will look to yield 14% return.