Spider Options for Sep 26

Spider Options for Sep 26

On 9/25 and 9/26 a Positive MACD Divergence developed. The different time frames show how the divergence developed and the Option chart clearly shows what that did for the Option Price.

At the bottom of the charts you see the MACD and the top part shows the prices with three moving averages.

 

 

Sep 26--28 min

Spider 28 min Chart

The Spider 28 min chart shows that it supports an up move.

Sep 26--14 min

Spider 14 min Chart

The Spider 14 min chart shows a good example of a Positive Divergence. At the 9/25 – 13 hour the MACD made a low and continued to steadily go up into Friday Sep 26. The share price however continued to make a series of lows. And at the same the share price created two V-shaped rallies. The horizontal red line through the prices illustrates the Divergence between the MACD and the share price. The red arrows show the entry and exit points for a trade.

 

SPY Sep 26--4 min

Spider 4 min Chart

The Spider 14 min chart shows that the MACD already made low at 9/25 the 11 hour. While the share price continued directionless volatility till about 13.30 on 9/26.  The MACD divergence on the 14 min chart was not as clear as on the 14 min chart. And so the 14 min chart was the chart with the clearest Divergence. The 4 min chart clearly indicated when the move was over. The MACD turned down and the move was over.

 

Option SPY Sep 26

Spider Option 5 min Chart

 

This is the chart for SPY Sep 26 Call option @ 197.50. The options compared with the Spider share price were slow to get going and came down faster. The price ran from under 10c at the red Up Arrow to about 70 c near the Down Arrow. The 198 options ran from 1c to 50c.

Author: tedvanderende

Share This Post On

Leave a Reply

%d bloggers like this: