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  • Swing Trade Ideas – (HYG) – May 11, 2020

    May 11, 2020 Swing Options Tips Comments Off on Swing Trade Ideas – (HYG) – May 11, 2020

    Market Outlook:
    The S&P 500 (SPY) has bounced higher off its $285 support level last week and started to resume higher to test its recent $294 top and potentially $300-$302 major resistance level. With oil stability and VIX below 30, a new calm has settled as investors continue investing with a fear of missing out on further rallies.

    HYG Trade Idea:
    On CNBC’s OptionsAction show on Friday, Tony Zhang looked at the High Yield bond market that the Fed will start directly buying in May. With a recent base formed at $78, HYG is on the brink of breaking above a major $80 resistance level. Expecting HYG to breakout higher, Tony suggests buying a July $75/$80/$85 Call Spread Risk/Reversal @ $0.00 Even. As of Friday’s close, this spread was trading at a $0.10 Debit.

    We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: HYG Options Action

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