The S&P 500 (SPY) has been bouncing between key levels, and I’m trading both sides with spreads to take advantage of the swings.
This week, I’ve set up a bull call spread at $609 by $611 — which means you buy a $609 call and sell a $611 call — and a bear put spread at $591 by $589 — which means you buy a $591 put and sell a $589 put.
These trades give me a $2 credit target with about a 30- to 40-cent debit — setting up a solid risk-reward profile.
Why spreads work in choppy markets
SPY has been stuck in a range, with $600 acting as a key level. It dipped to $600, snapped back up, and now we’re watching to see if it moves toward $610 or drops to $595.
That’s where spreads come in. Instead of making an all-or-nothing bet, I’m structuring trades to profit from either move.
A bull call spread — like my 609 by 611 — profits if SPY moves higher. A bear put spread — like my 591 by 589 — pays if it drops. The key is managing cost while keeping a good reward-to-risk ratio.
How I structure my SPY spreads
I look for a setup that gives me a credit target while keeping my debit small. As I said, I have a $2 credit target with a 30- to 40-cent debit. That means I’m putting up minimal risk for a solid payoff if one of my levels gets hit.
SPY isn’t moving in a straight line, but that’s fine.
We’ve got major earnings — coming up still, like Apple (AAPL) today — plus the PCE inflation report. With this much event risk, volatility should pick up. I expect SPY to hit either 595 or 610 before the week is out. If one of those levels goes, my spreads have a chance to lock in profit.
The bottom line is trading SPY spreads lets me stay flexible. I’m not locked into one direction — I’m playing both sides and letting the market decide which trade works.
With earnings and inflation data coming, there’s a high probability that one of these levels gets tested. If it does, I’m positioned to profit.
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
-
- Telegram:https://t.me/+av20QmeKC5VjOTc5
- YouTube:https://www.youtube.com/@FinancialWars
- Twitter:https://x.com/realchrispulver
- Facebook: https://facebook.com/therealchrispulver
Important Note: No one from the ProsperityPub team or Chris Pulver Trading will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Top Tech Stocks Have Witnessed a Huge Hit This Week
The last time Trump was president, Apple soared more than 300% in four years — and now that he’s back, the stock has already shown strength, even surviving the recent tech sell-off.
But traders don’t need to wait years for big gains — Apple’s profit cycles have delivered 319% in 40 days, and 436% in 77 days.
According to trading prodigy Graham Lindman, Apple is entering another profit cycle…
And he’s betting $100,000 on it. No guarantees, but he’s sharing his exact entry and exit triggers, plus the indicator that signals when to strike.
The performances displayed here are historical examples based on The criteria from both live-issued trade alerts and historical examples with the benefit of hindsight. We cannot guarantee future results using the strategy displayed.
