Don’t miss the Topic Directory - Getting lots of questions that are answered in here.

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Also - if you missed it - join our chat during market hours for premium subscribers. We are now leveraging discord for this. Link is at the very bottom of premium content: Trading Plan section below.

Reminder - I will never direct message you and ask you to trade with me or deposit money into an account. Even if it looks like me it is a scam. I wish I had ways to prevent those on social networks impersonating me. All I have is this letter which the premium subscription-only through beehiiv, opens up the discord.

In yesterday’s letter, I wrote:

This is what happened. After defending overnight at 5555 we dropped down, had a dip and defense at 5530 taking us all the way back to 5555, even before the session started. Then we dropped from the high of day at the open 5557.5 to a low of 5497.04, just above and below the 5555 and 5498 targets listed.

See how well the levels work?

With a third day of selling, is there more ahead? What targets above must be recaptured and held to put a local bottom in? What levels below are the gateway to more selling?

More in the trade plan below.

The $SPX 0DTE 5590 calls ran from a low of $65 to $105 for 62% gain.

I caught a 25% move on this call scalp and then hung it up. I wish I had played the short. I did not wait quite long enough to see confirmation and enter short. I took this one play and then wrapped it up. More in the trade recap below.

Below, we’ll cover the actionable levels, how I played them today and what they mean for the next session.

Once we couldn’t hold 5555 and 5530 it really picked up. Final nail was the 5511 level failing. Always trust the levels!

Now we are sitting in AH right above the key 5502 support level. What does this mean and where do we go from here? Read below for my trade plan which includes actionable support & resistance levels, outlook for the next session and today’s trade recap.

Learn the system to make 1-3 low risk, high reward trades per day using SPY/SPX options.

If you are enjoying this letter, consider sharing with a friend! We even have a referral program where you can earn free subscription time for referring others that sign up for a paid subscription.

Trading Plan

Here is a current check of the daily:

This includes all the way back to 1/5 & all overnight action.

Down into a prior range.

Quick volume check:

3 high volume red days.

Monday we do not have any scheduled data releases or speeches. Obviously political news is market moving news in an election year. Be on the lookout for Trump online, at rallies or news on Biden dropping/replacement etc.

I am receiving some great questions from beginners. This is helping me develop guides for this group as well as the course. More to come but I’ve created a separate channel in the discord just so you can not be shy about bringing those questions to the group. No question is dumb, we grow stronger together!

In fact, I’ve created this single resource as a guide. It is a living document and we will continue updating it. You must be logged into the site to read it:

https://letter.spyoptionsactionablelevels.com/p/strategy-guide-the-basics

As readers know trading after a massive move in either direction is risky.

Trying to predict when trend will break is a fool’s game because the trend can be stronger than you ever realize.

Going with the trend is hard because it has already run so far (or dropped) and move may be close to over.

All you can do is pick your entries carefully and with proper position sizing. Trading out 1-3 DTE or further also helps soften the blow.

Yes it will decrease the amount of profit but will greatly help keep you in a trade long enough to see return.

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