That of course means selling (writing) a call; the strike should be above the recent "price contextW, i.e. above 2080.
Choose a minimum of 6 weeks until expiration. You may also sell a call spread, e.g short the Call 2080 and long the Call 2120.
The analysis is simple in standard settings 12-26-9 on a daily basis, and the recent price high. That is all.
All we want is for the SPX500 staying below 2080 for at least several weeks.
You may use the SPX options, or the E-mini S&P500 Options, or the SPY Options (the latter two must be adjusted for current price relation to the base SPX500 )
The art of selling options (as a matter of fact, with any trading) is: You never know whether the next trade will be a winner. But a strategie that has shown a high likelyhood for success in the past will likely pay off in the future,
all trades on aggregate considered.
Experience has it, that from recent highs (yesterday), an immediate crash is unlikely.
Good enough to sell premium below the market. That I'll do.
I'll figure out which indexes. RUT and NDX seem strong but I have not decided yet.
And all will be in small size, as always. I rather do it in tranches than be whip-sawed with too large positions.