SPY fell from 201 to 190 in 5 days, step ladder like.
drawing a channel, we are currently at a supply line.
In the last hour, SPY has been hitting resistance at the supply line.
I decided this is a good position to go short.
The risk, there may be supply at 190.5 area, the most recent low.
VIX is high enough for me to take a strike 7 points away at 200 for 1.53
I could have went farther to a less risky strike for my usual .86 (204/209), however I think there will be resistance at 200-201 area.
And I am feeling greedy.
drawing a channel, we are currently at a supply line.
In the last hour, SPY has been hitting resistance at the supply line.
I decided this is a good position to go short.
The risk, there may be supply at 190.5 area, the most recent low.
VIX is high enough for me to take a strike 7 points away at 200 for 1.53
I could have went farther to a less risky strike for my usual .86 (204/209), however I think there will be resistance at 200-201 area.
And I am feeling greedy.