TRADING WEEK MAY 20-24

Last week's market action was almost a carbon copy of the previous week. The intraday trading ranges for SPY were 2.93, 3.27, 4.90, 2.98 and 2.20. The hi-lo for the week was 11.78. The inflation numbers weren't great but they weren't scary either. The at the money straddles for the previous two weeks were perfectly priced and breaking even would be the norm unless you were particularly lucky or unlucky. Existing Home Sales comes out at 10:00am ET on the 22nd, followed by New Home Sales twenty-four hours later. A new strategy with virtually no downside risk and an upside risk that could only be dangerous if an announcement that cold fusion is the real deal, thereby catapulting the SPY upwards before an adjustment could be made. That is buying 29 SPY 7Jun24 537 calls at 2.12 and shorting 29 SPY 7Jun24 540 calls at 130. If SPY heads south you can turn it into a 1x2 and if it heads up you can appropriately delta hedge. NVDA releases earnings on the 22nd after the close.