SPX Daily Outlook 06/27/2017

SPX Market Forecast

Close of the day for SPX should be below 2437
1st Target low below 2430
2nd Target low below 2425
3rd Target low below 2420
These are the key levels we will be watching in our trading today.

SPX Trading Strategy

We plan to Buy to Open .SPXW170628P2435 (SPX Weekly Option: put, Strike: 2435 Expiration: 06/28/17) at limit price of 5.55, looking to enter after 9:35 a.m. EST.
We will be looking for about a 50% profit and using about a 60% stop along with using our target price levels in the SPX above.

SPY Market Forecast

Close of the day for SPY should be below 243.5
1st Target low below 242.75
2nd Target low below 242.25
3rd Target low below 241.75

SPY Trading Strategy

We plan to Buy to Open .SPY170628P243 (SPY Weekly Option: put, Strike: 243 Expiration: 06/28/17) at limit price of 0.65, looking to enter after 9:35 a.m. EST.
We will be looking for about a 50% profit and using about a 60% stop along with using our target price levels in the SPY above.

Trading Guidelines

We normally wait till 9:35 a.m. EST to enter our trade, and most often enter the trade at a much lower price than our limit shared above. If market is moving fast in the right direction, we may enter the trade early. If the market is clearly heading in the opposite direction of our forecast, we will often delay entry until it turns. We will not enter any trade after 10:30 a.m. EST. Each trader must pick their own exits based on risk tolerance and market conditions. We often employ a trailing stop when our profit goals are hit or price targets are reached.
We use these levels as guidelines for our exit strategy. Once a level is hit, we watch very carefully and will often exit if market starts to reverse course off of these levels.

Make it a profitable day!
SPX Option Trader