SPY Volatility 02 June 2022

SPY Volatility 02 June 2022
The current percentile of SPY is around 68.25%.
The current implied volatility is around 26.05 -> which translates into a daily movement of 1.64%
At the same time, this translates in an aproximate +-7$ movement

For this we can assume close to 90% probability of efficiency based on the last years data.

Based on this our channel for today is going to be, assuming the opening price is 410
TOP 410 + 7 ~= 417
BOT 410 - 7 ~= 403
This strategy is perfectly suited for an iron condor

At the same for those that are looking for entry points in case they want to go long call/put or a reverse iron condor,
instead of normal iron condor we can make use of next data:
Based on the last years, we can expect that the asset is going to move more than 0.43% which translates into a +- 2$ movements.
And this comes with a 70-80% probability based on the last years.

TOP 410 + 2 ~= 412 => as an entry point for long where we can use the opening price as a stop loss
BOT 410 - 2 ~= 408 => as an entry point for short where we can use the opening price as a stop loss