The ES has completed its AB = CD formation. It is remarkable it made the run from the October lows in the market and has climbed over 1,000 points since its low of 4,122.25 made on October 27, 2023, in just under 4 months' time.

The VIX is sitting above 14 even when this market can only go up. We may just consolidate a bit or look for a slight pullback after an incredible run higher since October. The NQ still looks like it has some room to go if it is to complete its AB = CD, yet it has rolled over a bit today and is in the red as of 11am ET.

NVDA is still in the positive but just traded down $35 from its high of $823.94 made this morning and is now trading at $788.

We are going short this market with a bearish options trade. We are selling an SPY credit call spread above the market and will look to profit from a stall or any pull back by absorbing premium.

Selling a SPY March 1st $511 - $514 credit call spread

Sell the SPY March 1st $511 call.

Buy the SPY March 1st $514 call.

This will result in a net credit of about $0.90 right now. Our max profit is the $0.90, or $90 per contract pair, that we collect upon placing this trade. Our max loss is $2.10 or $210 per contract pair if the SPY closes above $514 as of next Friday's close.

This is a high risk trade so keep your position size in check, as any bearish trade in this market is obviously highly speculative. Don't get less than $0.85 for this trade, as the market has pulled back a bit as I've been writing this update, and this option is now at about $0.90 as of publishing. 

Stay tuned for updates!

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