3/23 Best Idea For The Week Ahead

The SPY closed with another green weekly candle making this uptrend now green 17 of 21 weeks.We’ve only tested the 8 ema weekly 1 time in those 8 weeks, that is some unbelievable strength showing every microdip is being bought. We’ve now been overbought for 2 months which shows you how true that statement is about the market being able to remain irrational longer than one can stay solvent.

Today’s trade idea is not a household name, I highlighted it a couple weeks back when I first saw some odd activity but even more has come in. The chart looks to be on the cusp of a big breakout. It is a $50B+ industrial and a leader in its space. All the trades coming in are targeting June expiry so the name has caught my attention. I’m going to highlight the charts, the option flow, and give you an idea of how to trade it using a calendar risk reversal using different dates to not only put the trade on for free but get paid to do so. The trade is profitable even with a substantial 25%+ decline in the stock should it happen.