SPX Weekly Credit Spread for April 1 cycle; watching 1850 support/resistance level for entry signal.
SPX closed yesterday at 1849.04, slightly below the support level of 1850. As of this writing, futures are +5.50, so there "could" be a rally up through 1850 today.
This morning brings two economic news releases:
8:30 am Personal Income and Outlays
9:55 am Consumer Sentiment.
If the data released in these reports is positive, AND SPX is firmly above the 1850 support level, I plan to cautiously enter a weekly credit spread for the April 1 cycle.
I will wait until the afternoon before entering to avoid the potential late-day volatility we have seen so frequently. If it doesn't look like SPX will close above 1850, the position will not be opened.
It is a trader's choice as to exact entry time depending on your market view and trading schedule. I will look to sell a put spread with a short put delta of -.15 or less, for $.75 minimum credit.
Trade entry details will be posted after entry, as long as the market cooperates.