SPY puts are still Wall Street’s favorite

Futures are up a bit this morning but have yo yoed all morning. The SPY is currently sitting at 314.22 in the premarket after having risen from the close yesterday though it was down to 309.21 in the premarket. We are looking at potential 2 full points gap up.  In the premarket charts at the moment we see that the 10 moving average line is above the 20 moving average line on the 5 and the 10 and the 15 minute charts. We also continue to see high volume this morning.

The SPY is sitting right below an important support line of 315.10. Our momentum indicators are all pointing higher at the moment and there is volume coming in. But because the VIX to rise this morning, the fear still in the market and the current trend, I am going with PUTS again. If the SPY moves up at the open I would wait for a reversal off a resistance line like 315.10 or 315.50 or the vix moving back up or I’ll look for selling volume to confirm my decision. 

Two important things to keep in mind. Volatility will both my our options expensive and may whip the price around to places that may be beyond your risk tolerance. So have to trade what is right for you.

SPY Resistance:  314.58, 314.88, 315.09

Support: 313.71, 313.44, 313.10

Today’s Trade of The Day is SPY March 4 310 PUTS