SNX is in a medium term uptrend, squeezing (bullish) and has earnings in 3 weeks. Options volatility is in the sweet spot and should rise a good 10% into earnings. Average 21 day price gain over the last 4 quarters has been $4.55. I'm looking to buy call butterflies centered at the $105 strike. I think I'll also look at the unbalanced downside PUT fly for a credit (Buy 1 100, Sell 3 @ 95, Buy 2 @ 90). Basically, a long PUT butterfly + a short PUT credit spread to pay for it.
Comment:
Price is also bouncing off the anchored VWAP and may try to close the recent hole left by the gap down.