Small Pullback
QQQ suddenly initiated a small pullback, with the target being the starting price from August 3, around 710. SPY also looks like it's heading for a pullback to 760.
This pullback isn't actually that small, but compared to July, it is. In terms of magnitude, it's simply giving back the excess gains from August 4. Even if it pulls back to 760, SPY's August gains would still be positive.
The VIX 24 Call opened 146,600 contracts $VIX 20260916 24.0 CALL$ . Compared to the previous 28 Call opening, this is relatively moderate — suggesting that this pullback will likely push the VIX only into the low 20s.
Back to the original range-bound expectation — most likely oscillating in the 1200–1700 range. Since June, starting with IGV, market makers have been aggressively squeezing sellers at resistance and support levels, creating false breakout trends before reversing direction to trap buyers. This also reflects just how many option sellers there are in the market right now.
With this small pullback, you could consider deep OTM Sell Puts, similar to Micron — $SNDK 20260828 900.0 PUT$ , and for Micron: $MU 20260828 720.0 PUT$ .
It feels like SPCX will have a hard time returning to 170 in the short term. With more lock-up expiries in September and October, any rally too high will get sold into. It's actually more favorable to let shorts accumulate at lower levels, then squeeze them in one big wave to let investors exit. In any case, I think you can keep selling the 125 Put through October $SPCX 20260828 125.0 PUT$.
In any case, the pullback target is 140 $SKHY 20260918 140.0 PUT$ . Wait until tomorrow to sell the Put.
Tesla's price action on Tuesday already says a lot. The next time SPY needs a boost, Tesla will be the main driver. For now, it's just grinding around the 340 level.
After NVIDIA partnered with six companies to financialize GPUs as a product, it feels like the market's pricing of the company has shifted somewhat. Of course, it could just be another short-squeeze tactic. Either way, ahead of earnings, you can sell the 210 Put $NVDA 20260828 210.0 PUT$.
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