SepWK2 - SPY Market Summary

SepWk2 - SPY Market Summary

The good thing about weekly options is that you don't need to be an expert and yet you can make pretty decent premium income if you manage your trades well enough. I am not kidding. I have been doing this weekly options thing since 2011, and admittedly if I do it well and safe enough, I can make decent income from this.

My biggest problem is probably psychology. I am greedy, fearful and impatient. That has been my downfall. Ignoring the rules that I set up for myself is my second biggest problem.

But imagine the potential if I am able to restrain myself and control my psychology, wouldn't that be powerful.

Alright, enough about my journey. Let's take a look at the SPY market movement yesterday and in a wider sense, the week past. Trading has been choppy with market moving sideways. Not too bad as you can see above that price has been testing the support given by the cloud (kumo) and that has proven to be a strong support for price.

Subsequently price has moved upwards as sellers got tired, and the bulls came in. Current price has risen above the Tenkan Sen and the Kijun Sen trend lines, so that is a bullish sign. The Tenkan Sen and Kijun Sen is about to have a crossover, so that's a reversal signal that prices are going up. Price has broken through the upper resistance of the cloud and that just means bullish as well. It is also good to note that the Chikou Span is also about to intersect historical price, that just means more upside to the SPY. :)

That said, I sold a Call Spread for the SPY for $171/172 for a premium of $0.05. Option expired worthless last night (SG Time). Woke up this morning with ROI 2.95%.

Nice.