- SPY long position stop/loss triggered on Monday at open. Most of my indicators are in short-term bearish mode, but I see two scenarios of SPY moving for the remainder of the year, either moving within 117.3 - 122.5 trading range, or 115 - 122.0 trading range. Either way, since I'm expecting SPY to be range bound, the best trading strategy would be to use overbought/oversold indicators (like Stochastic Oscillator) that work best in trading ranges.
- A more sophisticated strategy would be to sell slightly out-of-the-money puts when Stochastic Oscillator turns up from oversold condition and buy at-the-money puts when it turns down from overbought condition.
-FVE indicator's value is 20.3 while SPY mean implied volatility according to IVolatility.com is 19. Because FVE is above it's moving average and higher than implied volatility, I would still be hesistant to short volatility.
No comments:
Post a Comment