DecWk3 - SPY Sold!

Trade:
Sell: SPY DecWk3 PS 141.5/142.5 $0.08
Status: Filled on Wednesday 12 Dec 12.11am (SG time)
Expiry: 21 Dec (US time)
Contracts: 5
ROI: 5.94%

Analysis:

In my previous post I mentioned that this week is a major bull run week, and it is with good reason I am generally avoiding a Call Spread trade. Instead as you can see I have decided to opt for a Put Spread trade, and it is filled at a premium of $0.08. Woohoo!

Again, I am using my "easy-way-out" strategy and opting to choose the trade that is nearer to the current price. I am predicting that this is only a temporary pull back, but tomorrow the SPY is likely to continue its upward climb. Either that, or I will have to cut loss. :)

For the looks of it, I think I should have a pretty decent buffer at $142.5. I highly doubt that it is going to go down $3+ especially since the bullish sentiment signal has been triggered already. Just simply based on historical readings of the ichimoku charts, it is highly unlikely that it will crash. Unless something happens, like maybe the end of the world? In which case it won't really matter either.

I calculated that the intra-day low should be at about $144.83. So far it has only managed to touch $144.86 which is a good sign. Of course I hope that the SPY will not drop further tomorrow or Friday. Whichever happens, it will be an interesting journey as I will know if this theory really works or not.