Of course, the volatility outlook can change on a dime but, the VIX under 13 reveals that option traders are not worried about the S & P 500 any time soon.
The Trade I want to participate in more upside for the S & P 500 anticipating 5,100 to trade before 4,900.
I will define my risk as the S & P 500 just popped into overbought territory when viewed through a RSI (Relative Strength Index) perspective.
To reduce the cost of simply being long an at-the-money SPDR S & P 500 Trust call, I want to buy a call spread.
This is calculated by adding the $4.30 (net cost) of the spread to the lower strike price of this call spread, $500.
Organizations:
U.S ., JPMorgan