TheOptionPlayer.com sets up an S&P 500 Index (SPX) short-term (9-day) option strategy (based on Wednesday’s closing quoted bid/ask prices)
Investors could simultaneously:
The difference between funds received and paid out is a $.50 per share credit which we keep if the S&P 500 index closes below $2435 on Friday June 9th but immediately exit the position if it appears the price will end up higher. If the price gaps up at the open we may cancel the trade or submit an order with higher strike prices. See Guidelines page at www.theoptionplayer.com/ for explanation on how trade is set up.
Why we recommend it:
As seen in the daily chart below, the S&P 500 index (SPX) has stabilized near all-time highs this week. Record breaking performance from the NASDAQ continues to lead the other major indices higher. Actually only a handful of the heavy hitters in the NASDAQ are primarily responsible for the gain. The chart confirms the S&P 500 has stabilized at the overbought indicator and profit taking at current resistance level should further contain the price. There is a high probability the SPX will continue to trade below the target price for another week.
52-Week High: $2415.82
52-Week Low: $2000.54
The information presented here is for educational and informational purposes only, and this document is not to be construed as an offer to sell, or the solicitation of an offer to buy, securities. Some investments are not suitable for all investors, and there can be no assurance that any investment strategy will be successful.