SPY Options Trading Plan: Key Levels & Setups for week of August 3, 2026
SPY closed at $747.03. Get exact key breakout ($749) and breakdown ($737.58) levels, target price zones, and call/put option setups for Monday's open.
OPTIONS TRADING
SPY Options Trading Plan: Key Levels & Trade Setups for week of August 3, 2026
Major Stock Market Events This Week: July 27–31, 2026
This week featured major economic reports, a Federal Reserve interest-rate decision, and heavy second-quarter earnings activity. Here are the key events traders watched from Monday through Friday.
Monday, July 27
- Earnings from Baker Hughes, Cadence Design Systems, F5, and Amkor Technology.
- Focus remained on technology, energy, and corporate guidance.
Tuesday, July 28
- Earnings from Ford, Visa, Coca-Cola, UPS, and other major companies.
- Traders watched consumer spending, transportation demand, and business outlooks.
Wednesday, July 29
- The Federal Reserve announced its latest interest-rate decision.
- Microsoft, Qualcomm, Arm Holdings, Fortinet, and SoFi reported earnings.
- Market volatility increased around interest-rate expectations and technology guidance.
Thursday, July 30
- Second-quarter GDP and weekly jobless claims provided key economic updates.
- Rivian, Strategy, KKR, XPO, and Anheuser-Busch reported earnings.
- Investors focused on economic growth, consumer demand, and corporate profits.
Friday, July 31
- The Employment Cost Index offered a fresh look at wage pressures.
- Exxon Mobil, Chevron, AbbVie, Moderna, Linde, Eaton, and Cboe reported earnings.
- Traders finished the week focused on inflation, energy prices, and next week’s market direction.
SPY Trading Plan: Long and Short Setups
SPY closed at 747.03 after trading between 737.68 and 748.90. The key levels for the next session are the prior-day high, prior-day low, and midpoint near 743.29.
📈 Long Trading Plan
- Entry: Buy above 749.00 after a confirmed 5-minute close above resistance.
- **Stop-loss:** 747.70
- **Target 1:** 751.60
- **Target 2:** 752.90
- Confirmation: Look for strong volume and a successful retest of 748.90 as support.
- Invalidation: Exit if SPY falls back below 747.70.
📉 Short Trading Plan
- Entry: Short below 737.58 after a confirmed 5-minute close below support.
- **Stop-loss:** 738.90
- **Target 1:** 734.98
- **Target 2:** 733.68
- Confirmation: Watch for increasing selling volume and a failed retest of 737.68.
- Invalidation: Exit if SPY moves back above 738.90.
⚠️ Trading Rules
Avoid entering between 737.68 and 748.90, where SPY may trade sideways. Wait for a confirmed breakout or breakdown, manage risk carefully, and take partial profits at the first target.
SPY Options Trading Ideas
Use the August 3, 2026 expiration. Option prices are based on the latest after-hours quotes (Friday 7/31/26) and will probably change at Monday’s open.
📈 Long Options Plays
Aggressive Long
- Contract: SPY Aug. 3 $749 Call
- Entry trigger: SPY breaks and holds above $749.00
- Estimated option price: Around $1.10
- Profit area: SPY moves toward $751.60–$752.90
- Exit if: SPY falls back below $747.70
More Conservative Long
- Contract: SPY Aug. 3 $747 Call
- Estimated option price: Around $2.10
- Use when: SPY confirms strength above $749.00
- Benefit: Higher delta and better response to SPY’s move
📉 Short Options Plays
Aggressive Short
- Contract: SPY Aug. 3 $738 Put
- Entry trigger: SPY breaks and holds below $737.58
- Estimated option price: Around $0.35
- Profit area: SPY moves toward $734.98–$733.68
- Exit if: SPY moves back above $738.90
More Conservative Short
- Contract: SPY Aug. 3 $740 Put
- Estimated option price: Around $0.52
- Use when: SPY confirms a breakdown below $737.58
- Benefit: Higher delta and stronger downside exposure
⚠️ Options Trading Rule
Wait for confirmation before entering. Avoid buying calls or puts while SPY remains between $737.68 and $748.90, where sideways price action can quickly erode option value.
SPY Options Trading Plan FAQ
1. 📈 What is the SPY trading plan?
The SPY trading plan includes long call and short put setups based on confirmed breakouts and breakdowns. Traders should wait for price confirmation before entering.
2. 🚀 When should I buy SPY call options?
Consider SPY call options after a confirmed move above $749.00 with strong volume and a successful retest of the breakout level.
3. 📉 When should I buy SPY put options?
Consider SPY put options after SPY breaks below $737.58 and fails to reclaim that level.
4. ⏳ Which SPY options expiration should I use?
The plan uses the August 3, 2026 expiration. Short-dated options can move quickly, but they also lose value rapidly when SPY trades sideways.
5. ⚠️ How much should I risk on SPY options trades?
Risk only a small, predetermined amount per trade. Use a stop-loss, avoid chasing breakouts, and take partial profits when SPY reaches the first target.
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