⚖️ Put Credit Spread in Focus: Capitalizing on SPX Low Correlation

We are in the middle of earnings season. As earnings reports hit the market, some stocks react to the downside like GE We are in the middle of earnings season. As earnings reports hit the market, some stocks react to the downside like GE Aerospace (GE) which is down 4.8% as of this writing. Other stocks react to the news by rallying, like RTX Corp (RTX) which is up 1.59% in premarket. Both stocks are in the S&P 500 index. What’s interesting is how rising and falling stocks cause volatility to decline. The whole purpose of indexing, which is a way for an investor to easily get diversified, is to reduce volatility so one bad stock doesn’t hurt your overall performance. The indicator that measures whether stocks are stocks moving in the same direction or in different directions is correlation. When correlation is low as it is right now, it is rare for the index to make a big move. We have a limited-risk, high-probability strategy for trading index options when correlation is very low like this. We just need the market to move in a direction that gives us the right price. There may be just enough fear due to bond market action that we can get the price we need for this trade to be balanced in our favor. [This Volatility Term Structure]( chart for SPX shows the implied volatility of the options expiring today has the lowest volatility expectations. The market is not expecting a big move in the index. The index is down in pre-open trading this morning as the bond market is down as investors may be rethinking the Fed’s rate cut path. That could help us get the price we need for our strategy this morning. Correlation on the S&P 500 is very low as both positive and negative earnings reports keep changes in the index prices low. Volatility expectations are also very low for the zero-days-to-expiration (0DTE) trade. But there may be enough fear as the bond market sells off that we can get a good price on our favorite Put Credit Spread strategy. If we can get the right price, the low correlation works in our favor. To get the specific details and prices on today’s trade ideas, be sure to read today’s ODDS Online Daily Option Trade Idea. To access Odds Online Daily and be able to see any stock you are tracking in this software, click [here](. Thank you, Don Fishback --------------------------------------------------------------- See Related Articles on [TradewinsDaily.com]( [S&P 500 Index. (SPX), Trending Stock Report]( [Trading Tech’s Chip Rally]( [Explosive Multi-Year Breakout for Linde]( [Energy Fuels, Inc. (UUUU), Trending Stock Report]( [Markets Post Fresh Highs: Volatility on Horizon]( --------------------------------------------------------------- [TradeWins Logo]( © 2024 Tradewins Publishing. All rights reserved. | [Privacy Policy]( | [Terms and Conditions]( | [Contact Us]( Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins. For additional information on auto-trading, you may visit the SEC's website: All About Auto-Trading, TradeWins does not recommend or refer subscribers to broker-dealers. You should perform your own due diligence with respect to satisfactory broker-dealers and whether to open a brokerage account. You should always consult with your own professional advisers regarding equities and options on equities trading. 1. The information provided by the newsletters, trading, training and educational products related to various markets (collectively referred to as the "Services") is not customized or personalized to any particular risk profile or tolerance. Nor is the information published by TradeWins Publishing ("TradeWins") a customized or personalized recommendation to buy, sell, hold, or invest in particular financial products. The Services are intended to supplement your own research and analysis. 2. TradeWins' Services are not a solicitation or offer to buy or sell any financial products, and the Services are not intended to provide money management advice or services. 3. Past performance is not necessarily indicative of future results. Trading and investing involve substantial risk. Trading on margin carries a high level of risk, and may not be suitable for all investors. Other than the refund policy detailed elsewhere, TradeWins does not make any guarantee or other promise as to any results that may be obtained from using the Services. No person subscribing for the Services ("Subscriber") should make any investment decision without first consulting his or her own personal financial adviser, broker or consultant. TradeWins disclaims any and all liability in the event anything contained in the Services proves to be inaccurate, incomplete or unreliable, or results in any investment or other loss by a Subscriber. 4. You should trade or invest only "risk capital" money you can afford to lose. Trading stocks and stock options involves high risk and you can lose the entire principal amount invested or more. 5. All investments carry risk and all trading decisions made by a person remain the responsibility of that person. There is no guarantee that systems, indicators, or trading signals will result in profits or that they will not produce losses. Subscribers should fully understand all risks associated with any kind of trading or investing before engaging in such activities. 6. Some profit examples are based on hypothetical or simulated trading. This means the trades are not actual trades and instead are hypothetical trades based on real market prices at the time the recommendation is disseminated. No actual money is invested, nor are any trades executed. Hypothetical or simulated performance is not necessarily indicative of future results. Hypothetical performance results have many inherent limitations, some of which are described below. Also, the hypothetical results do not include the costs of subscriptions, commissions, or other fees. Because the trades underlying these examples have not actually been executed, the results may understate or overstate the impact of certain market factors, such as lack of liquidity. Simulated trading services in general are also designed with the benefit of hindsight, which may not be relevant to actual trading. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. TradeWins makes no representations or warranties that any account will or is likely to achieve profits similar to those shown. 7. No representation is being made that you will achieve profits or the same results as any person providing testimonial. No representation is being made that any person providing a testimonial is likely to continue to experience profitable trading after the date on which the testimonial was provided, and in fact the person providing the testimonial may have experienced losses. 8. The author experiences are not typical. The author is an experienced investor and your results will vary depending on risk tolerance, amount of risk capital utilized, size of trading position and other factors. Certain Subscribers may modify the author methods, or modify or ignore the rules or risk parameters, and any such actions are taken entirely at the Subscriber's own election and for the Subscriber's own risk. If you wish to unsubscribe from our newsletter, click [here]( TradeWins Publishing Corp.528 North Country Rd.St. James, NY 11780