06.03.22 | Auction Market Analysis + Put Option Profile

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Auction Market Analysis with Put Option Profile

This week concluded vertical development since May 20 and established a run-pause condition.   The auction rotated between an ABH of 4160 and an ABL of 4075. (See legend.)

Friday was a balance day with a slight skew to the upside (see distribution).   The market closed at the day’s fairest price ($4110) … pretty much middle-ground the week’s auction.

The Put Option Profile for next week’s Expected Move shows an uncharacteristically low variety in strike preferences.   In addition, traders essentially straddled 4100, bought insurance at the week’s ABH and sold puts at the week’s ABL.

Taken together, a skewed balance, straddling fairest price with a narrow range auction in consolidation.

Favor longs above 4150 and favor shorts below 4075.