Bullish – SPY $284.85 – S&P 500
The idea presented is the opinion of the Options Action staff and not a recommendation by OptionsPlay.
On Friday’s Options Action, the crew analyzed this week’s market selloff. After this week’s selloff, there is a higher probability of a bounce higher on asset rebalancing while markets remain above key support levels. Coupled volatility remaining a fairly muted level, despite the selloff, buying options remain cheap. Expecting SPY to bounce higher, Michael Khouw suggests buying a Sept 295/300 Call Vertical for $1.20 Debit. As of Friday’s close, these calls were trading at a $1.00 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: SPY OptionsAction Trade
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