After the SPY dropped by 5% all commentators are in a tantrum. This will get worse. Why?

• The Feds keep pumping printed money into circulation, which immensely inflates the currency.
• We seem to be in the initial step of the “Blow Off Phase” of a trading cycle. Or the end of the “Denial” phase

All markets rebounded slightly but are actually trading flat. I like it. The flatter the better.
We see a triangle in the IWM, which can go either way. Our entry is market with a red triangle but with the sentiment in play I lean to the downside.

If you wanted to enter the trade today you should wait for two blue candles, HH and HL. It gives you more for your spread and the likelihood that it might hit your strike is slightly reduced. You would enter a 232 /242 Credit Call, see yellow markings. We can also see what the expected move is in average and worst case scenario in red markings. 2.5 SD just doesn’t give enough credit but might if volatility goes up and then I would suggest to collect the same credit as under 2 SD but instead increase the SD to 2.5 /3.5 respectively.