Based on prior corrections, Gordon calculated that current support is in a $288 to $285 range. To make a bullish bet, he wants to sell the June 290 put and buy the June 285 put for a total credit of $1.77. The trade breaks even at $288.23 and it can make a maximal loss of $3.23. If the stock drops $3, Gordon would close the position.
If the support at $285 doesn't hold, Gordon believes SPDR S&P 500 ETF Trust could test the lower trend line at $225.
VIX Breaks Out To New Technical Highs As Market Sell-Off Intensifies
Ctrip Options Trader Is Buying The Trade War Dip
See more from Benzinga
- Alibaba, Olin, Qualcomm: 'Fast Money' Picks For May 6
- Matthew Rowe's SPDR S&P 500 ETF Trust Trade
- Dollar General, Knight-Swift, Micron, SPY: 'Fast Money' Picks For March 29
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.