Forecast for the US market for the second half of April 2022

11.04.22

In my opinion, the fuel for the broad trending moves in the US market over the next two weeks will be volume in SPY put options with an expiration date of April 14th. The next large volume puts will expire on May 20th and June 17th. By April 14th, 3 million put options should be expiring in SPY:

Sum calls-puts open interest SPY April 2022

In an option series expiring on April 14, the ratio of puts and calls is as follows:

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Medium-term options selling in the US market. April 2022.

The break in publications was due to the fact that in January-February I was creating software for analyzing open interest in options, and at the end of February there was no time for work. I hope that I can get back to work.

Even though the post is called a mid-term sell, I opened a directional trade in SPY on March 29th and bought a 450/449 put spread in SPY with an expiry date of April 14th. In principle, it would be possible to sell, for example, the 480th calls. I was waiting for the price to approach the 462-465 range and move down from there to about the 450 level. At the level of 450, a zone of increased volatility can be expected.

Order SPY put spread 450-490

Open Interest in SPY options on March 29th:

Option open interest SPY 29 March 2020

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