Trade Alert 4/26/2024

We are adding a couple of trades to the mix today. The first is probably a little surprising, given that we have been quite negative on markets for the past few weeks. However, the VIX has rolled over sharply. The market didn’t hold at a lower swing high. There is a pretty solid chance the market has set a short-term bottom. While we would expect lower prices are still coming in the longer run. In the short-term, we want to take the best opportunities to profit. Buy to open:  SPY May 17th (monthly) 510.00 strike call (ratio of 1) Sell to open:  SPY May 17th (monthly) 520.00 strike call (ratio of 2) Buy to open:  SPY May 17th (monthly) 530.00 strike call (ratio of 1) Debit: 2.41 Max risk = 2.41 or $241.00 per spread Max reward = 7.59 or $759.00 per spread We are also buying a longer-dated put butterfly on Gold prices (GLD). We love trading these longer-dated spreads in GLD and have great success with it over time. Buy to open:  GLD Aug 16th (monthly) 210.00 strike put (ratio of 1) Sell to open:  GLD Aug 16th (monthly) 200.00 strike put (ratio of 2) Buy to open:  GLD Aug 16th (monthly) 190.00 strike put (ratio of 1) Debit: 1.36 Max risk = 1.36 or $136.00 per spread Max reward = 8.64 or $864.00 per spread