Charting live part one 3 Spyg 🐦‍⬛🐦‍⬛🐦‍⬛black crows

The Impact of Three Black Crows on SPY Index

The “Three Black Crows” pattern, visible on the SPY index chart, signals a bearish reversal. This pattern indicates a strong downward trend, with three consecutive long red candles and minimal lower wicks, reflecting sustained selling pressure. The shift aligns with Friday’s activity, where naked puts often face heightened exercise risk, setting the stage for Monday’s potential sell-off momentum.$SPYG 20241220 90.0 CALL$ 

SPYG Position and Options Strategy

Holding SPYG, my covered call at $90 expiring Friday appears safe as SPYG trades at $88.10. The $1.60 premium cushions the position, ensuring I profit even if the call expires worthless. Despite last week’s purchase of SPYD at $91.30 and selling a $90 call, the potential $3 paper loss is offset by the premium. Effectively, the net loss narrows to $1.40, showcasing the power of options in mitigating downside risk.

Final Note

The analysis stems purely from chart patterns and insights gathered from various writers, not personal opinion. This is not financial advice; it’s essential to tailor strategies to individual risk tolerance and goals.@CaptainTiger @TigerTradingNotes @MillionaireTiger @TigerStars