SPY is trading at all-time highs – but only just. After a 4% dip (in late February/early March) to $376.70 it has recovered, but is only slightly above than its previous high. You can see from the chart that it was nowhere near our death cross ‘get out’ signal.
SPY is approaching a big round number – $400 – so expect to see some volatility around there. Many traders will have automatic sells in at that point, so volumes will go up and it will probably retreat a bit before heading north again.
What does this mean for our ITM option? It is now worth $169.36 so our portfolio is now worth $16,936, a 69% increase. But check this out:
SPY has gone up almost 22% – but ITM is up 69%.
NICE!
