We got one heck of a bounce today. Interestingly, it took a little bit to get going. Overnight futures were all over the place. In fact, we came really close to opening up the day lower.
Right now, we don’t know how far this bounce will go, or whether it’s anything sustainable. If 2018 was any clue, we’re due for some volatility.
In the mix of everything, it seems Wall Street plans to be playing gold long on pullbacks, and picking spots in various trades. With implied volatility through the roof, it still pays to be a seller of options. As a savvy trader, you want to make sure to balance the put credit spreads and call credit spreads so that you are not too biased one way or the other.
Even with the market up a ton today, the damage has already been done. The next area of resistance for the market is around $310, then $317.50. It’ll be interesting to see which if any hold up.
So what looks good to trade in this high volatility market ? I am not going to get too aggressive with selling premiums to the upside yet, but if we test today’s highs again tomorrow I will look to sell calls on SPY, AAPL, AMZN.