** Retracement Short in SPX

[Steven Place]

Nice bounce off the lows, and we’re seeing a hard rally into key resistance.

I think we will see some sloppy action in the indexes as we see profit takers come in soon.

My thesis here is that we won’t break to new all time highs by the end of October.

Here’s the trade:

Sell to open SPX Oct5 2020/2030 bear call spreads for 1.60 HALF SIZE (you can get filled at 1.70 right now)

ORDER to close at 0.80 with intent to resell

ADD to the trade if the spread hits 3.00

If filled, ORDER to close at 1.90

EXIT the trade for a LOSS if we close at new all time highs.

[Christopher ODonnell]

To clarify, does Oct5 mean Week 5 of October?

[Steven Place]

Yes it does Chris.

[Steven Place]

BIDDING TO CLOSE SPX Oct5 2020/2030 call spread for 0.80

With the selling I think I can get filled into the close.

This means I can capture 50% of the profit after holding for 4 days.

IF I get filled, I will be ready to RESELL this spread at about 1.80.

[Author]

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