Wednesday Apr 12 2023 SPY SPX ES Actionable Levels

In yesterday’s letter, I wrote:

That sums up today pretty well. A 20+ range but ultimately closed unchanged (.17 or 0.00%). This is extremely rare for $SPX and it likely says a lot about tomorrow. Everything hinges on CPI & data releases later this week. CPI is up first prior to regular session tomorrow.

The 0DTE $SPX 4120 put ran from a low of $90 to over $1400+ per contract. - 1455+% gain in less than 30 minutes.

I traded these end of day (after closing out some 4115 puts for a small loss) as I was awaiting this rejection of 4121 level. I then reopened into these. I did not catch the 1455+% gain though - probably no one hit it that perfect. I did open some at 1.30 and close at 5.00 for 285%. This was a smaller position size, taking some of the profits from my (painfully long choppy call hold throughout the day) and risking them for this rejection late day. More info in the trade recap along with a very important topic - position sizing!

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

Levels from last night worked out great (15 min chart). however, with the long slow, choppy movement it was very difficult to play short dated options today. Even opening calls on the failed breakdown of 4108 (close to 4103) and holding was tough. In other words, even catching the low of the day was a tough choppy hold into profit. More in the trade recap below. Always trust the levels!

Now we are sitting in AH right on top of the 4109 support level. What does this all mean and where do we go from here? Read below for my trade plan which includes actionable support & resistance levels, outlook for tomorrow’s session and today’s trade recap.

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

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