Live: Thursday, March 5, 2020

2:35 p.m. New York time

I’ve entered another bear call options spread on SPY, expiring April 20, to replace the similar position, exited for a profit on Wednesday, that mistakenly had a  March 17 expiration. I’ve posted the analysis.

Today’s decline on the chart, through the lens of Elliott wave analysis, looks like the beginning of the 3rd wave of the downward trend. The spread’s entry price on the chart was about $302.

If I’m correct, the price should go below SPY’s  the February 27 low of $285.54, and then continue its downward trek, producing a rapid profit. If I’m wrong and wave C of the 2nd wave correction is still underway, then the expect the price will rise again to around the $310-$312 level. With expiration 43 days away, I think that leaves plenty of time for the position to return to profitability.

By Tim Bovee, Portland, Oregon, March 5, 2020


Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

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