Let’s start the week out by looking at trade examples in the SPY. We’ll take a look at what is going on this morning, a great indicator that is effective in this situation, and why the SPY is an excellent choice for trading options. At the bottom of this email, I even include an update on a previous example that had the potential to reel in 168%.

SPY, or the SPDR S&P 500 trust was one of the first exchange traded funds and is also one of the most traded ETFs. That volume makes it ideal for great trades. SPY tracks the S&P and makes it possible for individual traders to trade moves in the entire index.

Look at what the S&P did on Friday to help us get an idea of what to expect from the SPY this week. The image below is Friday’s price activity.

This chart image is courtesy of FINVIZ.com a free website and gives a quick view of each day’s movement.  Understanding the direction, the S&P was moving on the previous trading day is a great place to start.

SPY is an excellent tool to pluck profits from the market in virtually any climate. Click here to see how.

Next, let’s look at chart that includes the Percentage Price Oscillator or PPO indicator. We are specifically looking at the lines in the PPO to cross but you can get more information about this indicator here.

The PPO is heading down and the last few candles are red. This indicates a bearish trend. We will look at buying puts.

Potential SPY trade:

In this example, if the price continues to fall you could consider a put trade if it moves below 430. The short-term target is $426.

Here’s Why an Option Offers A Big Potential Payout

The stock price in this example is $430.42. You would wait until it found a bottom before buying stock.

If you were trading options and selected a 426 Put option strike, you would pay a premium of around $5.19 for the Oct 20th expiration, or $519 for the 100-share option contract.  If the stock price moves to 426 the premium is apt to go up about $3.00.  Your premium of $519 plus $300= $819. That is a profit of 58% over a short period of time.

Remember, you can take profit anywhere along the line, you don’t have to wait for the expiration date to sell.  It is often wise to take profit when it is earned, especially in a volatile market.

Stay positive and know you can do this.  Knowing creates positive results! A part of the abundance process is letting go of anything negative, which creates space to receive.

I wish you the very best,


To see additional ways to trade the SPY to boost your income, click here

Previous Trades:

Last week we discussed buying SPY 439 puts. On 9-18 the Oct 20th 439 put was $3.94. You could have sold on 9-22 for $10.56, a 168% profit.