Premium Service traders are under instructions to buy SPY puts on a SPY close below 450.00. SPY closed yesterday @ 450.13 and then traded below 450 after-hours. Today it gapped down to open at 448.04 and has drifted up during the session, currently trading...drumroll please...right at 450.00. My best advice: Buy 1/2 position now, the other half at any close below 450.00. SPY Sep 15th $450P (7.30-7.32) 43 days to expiration SPY Oct 20th $430P (5.24-5.25) 78 days to expiration Insofar as my target is under $400, those puts above should be between 50 and 30 points in-the-money by expiration. October expiration @ about $525 per put buys an entire extra month for this pattern to unfold. SPY - Intermediate Trend Trading Model Buy SPY puts now, more on first close below 450.00 ATR = Average True Range: Note how price tends to follow direction of ATR
