TheOptionPlayer.com executed an S&P 500 Index ETF (NYSE: SPY) August 31st expiration 30-day) option strategy. Confirmation information is displayed directly below. Login in as a Premium Subscriber to view data/images
The difference between funds received and paid out is an approx. 18% return if the S&P 500 Index ETF closes below the target price on expiration day.
Why we recommend it:
• As confirmed in the chart below, similar to the other major equity indexes the S&P 500 Index ETF (NYSE: SPY) is starting to pull back from elevated levels.
• The S&P 500 Index is at the overbought level where the price usually stalls out.
• As quarterly earnings season continues investors appear to be “selling the news”
• Momentum and trend indicators are a trying to turn bearish.
• If the current trend continues it might be difficult for the SPY ETF to make a series of all-time highs to close above our short call on the August 31st option expiration date.
52-Week High: $286.63
52-Week Low: $241.83