In reference to the earlier article articulating the benefits of options premium selling ("Any Given Friday" Trade), We exited the $SPY weekly 235.50/236.50 credit call spread with a profit upon spotting the pattern depicted in chart 1 below. I hope this real-life example was of educational value to you.
Chart 1. $SPY pattern targeting ~236.20.
What to Expect Next Week
I'm focusing on the $QQQ and the Right-Angled and Ascending Broadening Formation depicted in chart 2 below. I'm looking for a pullback to the vicinity 129.40 before the next bull run gets underway. Chart 3 shows a Head-and-Shoulders under formation, with the current bounce aiming to complete the right shoulder. The 132.72-132.78 should mark the right-shoulder's top.
Chart 2. $QQQ: right-angled and ascending broadening formation.
Chart 3. $QQQ: a head-and-shoulders top under formation.
Pre-earnings profit taking in $AAPL, $GOOGL, and $AMZN are to be noted. I've been short these names by way of credit call spreads since Thursday morning. I'll hold on to these positions until the $QQQ reaches its downside objective.
Chart 4. $AAPL
Chart 5. $AMZN
Chart 6. $GOOGL
Peter Ghostine (@peterghostine)
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