Market Overview
The SPY is trading at 770.58 and has now strung together 6 consecutive closes above the 21 EMA, which sits at 764.59. The 8 EMA at 767.04 is the closer dynamic level to watch on any intraday dip. After that big gap-and-go on September 21st, price has been digesting in a tight range just under the 775 area, which is healthy action. VIX at 15.5 is calm, the full MA stack is intact, and there is nothing in this chart that says you need to be defensive right now.
Trades of Interest
I don’t normally high light short-dated trades or deep in the money trades that come into my flow but I think these two are worth mentioning.
UBER — BULL
Puts Sold · Strike: 62.0 · Exp: Oct26 30th · 12,300 contracts · $575K. This is well below the 200 SMA - large but not particularly exciting in the context of UBER’s recent weakness.
INTC — BULL
Puts Sold · Strike: 200.0 · Exp: Jan28 · 5000 contracts · $44.0M
These are the INTC trades I have classified so far today. Very bullish. Ignore the first row - stock tied is neutral and not directional but look at those giant Jan28 200 sold puts - they are hugely directional! If this player thinks that INTC has reached a structural bottom here at $110-120 the IV has allowed them to structure a massive buffer even if the stock just chops and goes completely sideways for the next 18 months. Break even is $112.
