First Week of December Open Interest

Hope everyone had a lovely Thanksgiving weekend.

Open Interest:

SPY-W: (48 of 63 pins since Wednesday expiration inception).* The only thing that sticks out is the high 260 calls. If price opens Monday over 260 or quickly gets over that level and doesn’t look back then you want to go with because it is showing great strength to stay over the high calls. Should price open under or fall back under and stall then it’s likely price closes at or below 260 on Wednesday expiration. 

SPY-F: (39 of 57 pins since I began tracking Friday’s).*  The current best in is around 260, but it’s not a strong pin and will likely change. The only call resistance is small and at 261. If price stays over 260 early in the week I would ignore the 261 Friday calls as they are negligible and thus, SPY has free reign at the moment without much call resistance. Should SPY pull back then there is good put support starting at 258 and a place to get long if that were to happen next week. 

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Example of the information from last weeks Weekly Open Interest Strategy Post (also part of the full premium service which included my actual trade that yielded over 700% and could have been much more).

AMZN: Still just trading sideways since earnings and hasn’t been a great short term trading vehicle recently. If it can get over the 1,140 calls next week, which is also technical resistance, then it probably heads to the second high call strike at 1,050. There is some put support around 1,125 to 1,127 which is also near Friday’s low. If price got back to that area or below there next week I would probably buy calls because there could be an anticipatory run up into Black Friday. Speaking of a possible run up, if I see AMZN show strength right on the open Monday I may take a lotto trade even if it’s still just in a range because it’s possible the 1,040/1,050 high strikes was a call spread in anticipation of prices running into Black Friday. Under 1,125 there is technical support at 1,122 and 1,116. Reminder this is from last week

Pinning stuff:

*An explanation as to how I define range pinning can be found here. More information about what pinning is can be found under the education section of my site.

Wednesday 11/22: Successful pin. Friday 11/24: This was borderline in my opinion, but calling it a failed pin to be on the more conservative side.

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