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2 Best Short-Term Trades for Friday's Options Expiration

This Friday is the August op-ex (monthly option expiry) and it’s the time of the month when we see a lot of positional changes due to large percentages of options coming off the board (i.e. expiring).

Since the big de-leveraging last week on the market open, SPY has bounced and recaptured a key support zone in 530-532 – a level we’ve been talking about heavily in the Benzinga Option School.

We’re now floating above this zone, and as long as we’re above it, we’re remaining mildly bullish on SPY. However, while last week we’ve seen many tickers bounce, few have been willing to separate themselves from SPY, either showing more strength or weakness vs SPY.

If you look at the 1hr chart above, you can see many tickers are simply following SPY’s lead (SPY = candles, QQQ = maroon line, NVDA = green line, Gold = blue line).

If all of the above tickers are trading with SPY, then it becomes tricky to decide which tickers to be bullish on as many are not outperforming SPY.

So let’s dig up the tickers that are doing much better (or far worse) than SPY. Those are the trades I’m always looking for, as they provide more opportunity on the same bullish or bearish move.

Let’s take a look at two tickers I’m looking at for potential bullish or bearish trade setups…

Come check out my Options Flow Cheat Sheet

A core feature of 'Trading Waves' is the daily table-view post by Chris Capre. This cheat sheet is a compilation of his selected insights from the day's options flow data, offering perspectives that Chris employs for his trades.

Click here to see my ‘Trading Waves’ Cheat Sheet