Short Squeeze Stalkers

Posted by Joe Duffy | Mar 6, 2026 | Joe Duffy's Trading Advantage | 0 |

Every time the market stumbles the put option buyers flood in. That in turn helps to create the conditions for a short squeeze and the market moves back up. We saw this scenario play out once again in the last hour of trade on Thursday. The bullish buyers will probably show up at some point again Friday. We could see two way action Friday, but I doubt we see sustained selling.

In my last note I left a spread to take advantage of a sideways to lower market. Long SPY March 13 700 calls, short Spy March 13 680 calls. This trade was done at 10.80 credit for subscribers. Our breakeven is 690.80. Our 100% profit is anything below 680 by expiry Feb 13. The SPY closed 681 on Thursday.

Thanks,

Joe

PS–Here is the advice I would give my own family about trading this market.

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Joe Duffy

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