On February 2, 2023, the 15-minute chart of SPY was headed to a new high of around 418 at 11:00 am PST. the MACD was diverging down strongly indicating prices should be nearer 412. As we have options expiring today on SPY we can look for an out-of-the-money option under 10c a contract.
With only 2 1/2 hours remaining in the trading day, this trade will be very short-term. The nearest out-of-the-money option expiring February 2, 2023, and with a price under 10c was the 410 put with an entry around 3c.
Entering the trade at 11.10 am PST, we rode this up to around 18c before exiting after 40 minutes for 6x your money.
How do we do this?
The Options Hunter strategy focuses on divergencies between the MACD and the price movements of the underlying ticker. We don't include other indicators such as RSI, Stochastics, or Bollinger bands as our approach is kept simple, straightforward, and repeatable.
The main difference between weekly and monthly options is their expiration dates. Monthly options end every month on the third Friday of the month, while weekly options terminate almost every Friday and are issued on Thursdays.
Weekly options are an excellent way to make profits, and with the new QQQ and SPY daily options expiration, the potential for profits has increased.