Ok, the market is up. It would have been a far better trade if I had waited until today’s lows before putting the trade on, but that’s perfection and hindsight.
The trade is predicated on this week’s COT numbers.
With weekly Options you don’t really catch big moves in the index that often, not often enough anyway that you can buy options outright. Usually some form of spread is required to return a profitable trade…and good timing.
That was the basis of yesterday’s trade. A spread that purchased in the pullback phase, with a positive COT number indicating some buying power, will finish in the money.
In addition, you can’t wait too long into the week as the decay in short dated options shrinks any potential spread that might be obtained.