Market just breached the top Bollinger Band → time for SPY Call Ratio Spreads

S&P 500 just hit 6,600 and breached the top Bollinger Band… That's time for SPY Call Ratio Spreads!

Quick note: A Bollinger Band breach doesn't mean reversal. The market can run higher for weeks. But statistically, moves after breaches are easier to hedge, making this the perfect spot for a ratio spread.

My today's trade idea:

Buy 1× 675C / Sell 2× 678C (Oct 17 expiry)
Credit Collected: $151
Max Profit: $451 (if SPY pins 678 at expiry)
Probability of Profit (PoP): 76%
Initial Theta: $7/day
No downside risk, risk only if market explodes way above 682.

That's the beauty of the call ratio spread. It gives you credit up front, profit if SPY stalls or drifts, and defined adjustment rules (see 2025 Trading Plan) if the rally keeps going.

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