Rocket Equities & Options Report 07-24-23 New Trade
This market looks like it could be getting a bit choppy, with the potential for volatility with the Fed decision expected on Wednesday. We also get ECB rate decision Thursday morning, along with about 165 of the S&P 500 companies reporting this week, including MSFT, GOOG, META, and many others.
We are looking for some bearish action, as we saw how high the bar was for NFLX and TSLA last week, along with a Fed where all expectations are that they are done raising after this meeting, but all of that is already baked into this market so we will see if it can live up to expectations.
We are buying an SPY put spread that expires this Friday, July 28th. The SPY is currently trading at about $454.10.
Buy the SPY $454 July 28th Put
Sell the SPY 446 July 28th Put.
This should result in a debit (cost) of about $2.15 or $215 per contract pair. You can pay up to $2.40, but don't put in a market or limit order that high before you see if you can get a better execution. This is a high risk trade as it is out of the money and we have no intrinsic value, it's all premium for exposure to the downside in the SPY until Friday.