I went long SPY on Tuesday via option spread at 579. Obviously if we are around there on Wednesday morning I think it’s a good long opportunity. My target is the recent high. It’s a spread so my downside has a bit of protection, and if it doesn’t rally right away, I treat the long dated option as the stock in a covered write strategy and sell a short dated option against it. My initial position is long November 1 580 and short October 18 585 diagonal calendar spread. After October 18 I have a choice to roll the short leg to another month and strike or just exit the position. If you are trading options without knowing how a strategy like this works it is akin to driving your car except it only turns left. Straight puts and calls DO have their place at times, but NOT all the time. In Target Zone Trading we do a lot of spreads like this. I also talk a bit more about these spreads in my daily morning video call. This is a short term trade looking for another run at the recent high.

In longer term positions I am long TLT at 97.00 and 94.50. It closed 95.00. Still like it. I have long dated options well into the second half  of 2025. Also have long CVX spread with long dated in the first quarter of 2025.

Thanks,

Joe