The SPY is looking like it is again reaching the top of a range that has existed since late October 2014. It has been in the 200-207ish range during that time. But in this process, there have been lower and lower highs each time after hitting the 200 support. That is until this week's movement. The question is if this a head fake, or a breakout.
It seems to be more and more clear to KDK Options that the next leg for the SPY is going to reach either 180 or 220 by the end June of 2015. On the upside, that represents a little more than a 6% move from today's prices. On the downside, the gain would be about 13%. But using options will be a major lever in finding profit in this case.
KDK Options is looking at the different options pairs that might fit a trade with these expectations. Specifically, are there any call/put option combinations that can have a profit when one is fully valued and the other is worthless at the end of the trade? If we find a pair to trade, we will update the post.
Good luck to all!
If you
would like to contact KDK Options, you can leave a comment, email at
kdkoptions@gmail.com, twitter @kdkoptions, or find us on Stocktwits
@kdkoptions.
For non option trades, take a look at what KDK Fund is currently doing (link here).
**
This blog is used for informational purposes only. It should not be
used as a recommendation to buy or sell any security. Do your own due
diligence before trading or investing. **
