A New Position in SPY
The Monday that starts expiration week is a great time to start moving your long call or put options trades out into the next expiration month. This will give your contracts more time to mature and less of a chance of falling victim to IV collapsing. (As a general rule I like to have front month options closed out the Friday before expiration). It's also a great time to start considering stocks you'll be looking to pin on Friday, a topic we'll cover more starting Wednesday.
So now that our bigger picture trades will fall into NOV or DEC expirations, what setups are forming that best take advantage of this? One I'll be looking to initiate today is a long play on SPY. This market was a bit rough on us earlier in the year but now that we've had multiple Squeezes fire off to the long side and have two clear areas for stops and targets, this is a setup I like. I'll be bidding for the NOV 112 SPY Calls and use the stops and targets noted on the daily chart provided. I'm not expecting a great deal of volume with today being Columbus Day, but we should be able to get a good position in this ETF.