11/4 Recap

The SPY continues to trade heavy with what looks like an 8th red candle in 9 sessions forming. This is our 3rd open in a row below the 21 ema and while we have a small window to bounce back over it, it is starting to slope down which usually leads to a longer move down, for now players are deleveraging. The 50 day has been support twice in the last 3 sessions. If we lose that, the next stop is the 100 day just below 560. This isn’t looking very good for bulls now. Hopefully you see now how that weakness persists once you lose that 21 ema like we did 3 sessions back, it really is impossible to get caught up in a big market move down if you’re unbiased and just listen to the warning signs the chart is sending. Bulls hope this is just one giant headfake and tomorrow night after we get election results and some clarity we get a massive gap up but until that happens, you have to assume the worst.

Recent Trades

APPN - I highlighted this trade on 10/17 here a player sold 6250 of the November 25 puts with the name just over 30, it has been on an unbelievable tear rising over 20% since sending those short nearly worthless. It’s odd they went with short puts and collected just .30/share vs the $7 move up the equity had, but they were being conservative and nailed it pocketing around $200k in premium in 2 weeks on the trade.

Today’s Unusual Options Activity

Here is today’s link to the database, it will be open until the opening bell tomorrow, the rest of today’s trades will be added by the afternoon. Check back tonight for updated trends and trades.