On CNBC's "Trading Nation," Todd Gordon of TradingAnalysis.com spoke about a bullish options trading idea in SPDR S&P 500 ETF Trust SPY.
Based on prior corrections, Gordon calculated that current support is in a $288 to $285 range. To make a bullish bet, he wants to sell the June 290 put and buy the June 285 put for a total credit of $1.77. The trade breaks even at $288.23 and it can make a maximal loss of $3.23. If the stock drops $3, Gordon would close the position.
If the support at $285 doesn't hold, Gordon believes SPDR S&P 500 ETF Trust could test the lower trend line at $225.
Related Links:
VIX Breaks Out To New Technical Highs As Market Sell-Off Intensifies
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.