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In this video, I walk through how I’ve been thinking about hedging SPX trades when market momentum starts to shift.
We’ll look at:
How big round numbers and option levels (like 6600, 6650, 6700) act as key support/resistance.
Why the Average Strength Deviation (ASD) metric can give an early signal when momentum is slowing.
How this week’s negative ASD reading hinted that call spreads or covered calls could have been a smart hedge.
Practical examples of setting up out-of-the-money call credit spreads (14–30 DTE) to balance long exposure.
This isn’t a backtested system yet—more of a framework I’m testing—but it may help you recognize when it’s time to add protection to your portfolio.
👉 Let me know in the comments how you use metrics like this to hedge.
