This week we are anticipating options expiration (OPEX) on Friday, May 20.
Big money likes to take advantage of options expiration to cause chop and keep price near liquidity. This week, keep this in mind to either stay out of trouble or take advantage of this event.
It’s important to be aware of OPEX as it ties in with trading around liquidity.
The point of control (POC) for the S&P 500 (/ES) dropped to $4,013.50. On Monday, /ES spent most of the day trading around this POC level.
On Tuesday, we have two catalysts that could impact the market. First, we’ll have a member from the Federal Reserve speak at 8:00 a.m. Eastern. At 8:30 a.m. Eastern, retail sales from April will be reported.
In the video above, we’ll lay out potential scenarios we could see this week with OPEX and lay out our next liquidity targets and key zones.
Here is our focused list:
SHOP — If SHOP pops and fails at $383, we’ll target $355 to POC at $340. If it pops and breaks through $383, we could see SHOP hit POC at $401 and reach the $430 to $440 range.
ROKU — As long as ROKU is below the $103 to $98 zone, look for a drop to $88.50 and $83. If ROKU holds $92, it could pop to the mean at $98.