SPY Weekly Options Levels & Setups | Updated for the Week of Aug. 31, 2026
SPY weekly full detailed trading plan with options for the week of Aug. 31, 2026: key breakout levels, calls, puts, target zones, and risk rules for the entire trading week.
OPTIONS TRADING
Table of Contents:
SPY Options Trading Plan: Key Levels & Trade Setups for the Week of August 31, 2026
SPY Catalysts for (Aug. 31st - Sept. 4th)
Treasury Yields, Labor Data, and Federal Reserve Policy
Treasury yields and interest-rate expectations will remain major drivers for SPY. The economic calendar is heavily concentrated around employment data, including JOLTS job openings and the ISM Manufacturing PMI on Tuesday, the ADP employment report and Federal Reserve Beige Book on Wednesday, weekly jobless claims on Thursday, and the August employment report on Friday.
Economists are expecting approximately 50,000 new jobs, an unemployment rate of 4.1%, and year-over-year wage growth of 3.0%. A stronger-than-expected labor report could push yields higher as traders scale back expectations for easier Federal Reserve policy, creating pressure on equity valuations. Softer employment data or dovish comments from Fed officials could have the opposite effect and support a relief move in SPY. Federal Reserve Governor Christopher Waller is also scheduled to speak Thursday.
Post-Nvidia Earnings and the AI Trade
Nvidia’s earnings report is no longer an upcoming event, but its market impact will remain important throughout the week. Nvidia reported second-quarter revenue of $96.22 billion versus estimates of approximately $92.11 billion and adjusted earnings of $2.22 per share versus expectations of $2.09. The company also guided for third-quarter revenue between approximately $105.84 billion and $110.16 billion.
Despite those strong results, NVDA closed Friday, Aug. 28, at $217.55, down 4.43% on the session. That reaction suggests investors may demand more than a headline earnings beat, particularly as expectations for the AI trade remain elevated. Continued weakness in Nvidia and other semiconductor stocks could weigh on technology-heavy indexes and SPY, while stabilization in NVDA and strong follow-through from AI-related stocks could help support the broader market.
Manufacturing, Services, and Corporate Earnings
Investors will also be watching whether the economic data continues to show resilient growth. The ISM Manufacturing PMI is expected to come in at 55.1 on Tuesday, compared with 55.6 previously, while the ISM Services PMI is forecast at 54.4 on Thursday, up from 54.1. Strong readings could reinforce the higher-growth, higher-rate narrative, while weaker data could renew concerns about slowing economic momentum.
Several large technology and software companies are also scheduled to report earnings, including Dell and Palo Alto Networks on Tuesday, Hewlett Packard Enterprise, Snowflake, and Broadcom on Wednesday, and Zscaler on Thursday. Although these companies are not all large SPY holdings, their results and guidance could influence sentiment toward AI infrastructure, semiconductors, cybersecurity, and enterprise technology.
Market Outlook
SPY closed Friday, Aug. 28, at $769.35 after trading between a high of $775.30 and a low of $768.31. The ETF is likely to remain sensitive to employment data, Treasury yields, post-Nvidia positioning, and technology-sector earnings.
A sustained move above Friday’s high of $775.30 would strengthen the short-term rebound case, while a break below Friday’s low of $768.31 could signal that the pullback is becoming a deeper decline. The biggest volatility window of the week will likely come Friday morning when the employment report is released.
SPY Bulls vs Bears Trading Plan
Aug. 31st - Sept. 4th
Key Levels
• Resistance: 770.05
• Breakout level: 775.30
• Major upside reference: 779.37
• Support: 769.20
• Breakdown level: 768.31
• Downside targets: 762.04, 756.13, and 752.41
Extended downside reference: 749.77
Bulls
Entry: Consider a long position after SPY breaks and holds above 775.30.
**Stop Loss:** 770.05. A move back below this level would weaken the breakout.
**Target 1:** 779.37
Target 2: Trail the position if SPY breaks above 779.37 with strong momentum.
Bullish Confirmation: SPY should reclaim and hold above 775.30, build higher lows, and show continued strength above Friday’s high. A failed breakout back below 770.05 would invalidate the bullish setup.
Bears
Entry: Consider a short position after SPY breaks and holds below 768.31.
**Stop Loss:** 769.20. A reclaim of this level would weaken the breakdown.
**Target 1:** 762.04
**Target 2:** 756.13
**Target 3:** 752.41
Bearish Confirmation: SPY should remain below 768.31, continue making lower highs, and show acceptance beneath Friday’s low. A sustained move toward 749.77 would represent an extended downside leg.
No-Trade Zone
Between 768.31 and 775.30, SPY may remain volatile and range-bound. Avoid forcing a trade in the middle of the range. The cleaner setups are a confirmed breakout above 775.30 or a confirmed breakdown below 768.31.
SPY Options Trading Plan — Friday, Sept. 4 Expiration
SPY’s most recent close was $769.35 on Friday, Aug. 28. The contract prices below are Friday reference prices, not guaranteed Monday entry prices.
SPY Weekly Call
Contract: SPY Sept. 4, 2026 $775 Call
Expiration: September 4, 2026
Friday reference price: $1.71 bid / $1.73 ask
Entry: Buy only after SPY breaks and holds above $775.30.
Stop Loss: Exit if SPY falls back below $770.05. Also use a 15% premium stop from your entry price.
Target 1: SPY $779.37
Management: Take partial profits near the first target and trail the remainder. Do not hold the contract into expiration if SPY loses momentum or fails to hold above the breakout level.
SPY Weekly Put
Contract: SPY Sept. 4, 2026 $765 Put
Expiration: September 4, 2026
Friday reference price: $2.37 bid / $2.40 ask
Entry: Buy only after SPY breaks and holds below $768.31.
Stop Loss: Exit if SPY reclaims $769.20. Also use a 15% premium stop from your entry price.
Target 1: SPY $762.04
Target 2: SPY $756.13
Target 3: SPY $752.41
Extended downside reference: SPY $749.77
Management: Take partial profits at each downside target and trail the remainder. Avoid holding the put if SPY quickly reclaims $768.31.
Trade Filter
Avoid buying either contract while SPY trades between $768.31 and $775.30. Wait for confirmation because weekly options lose value quickly when SPY remains trapped in a range.
SPY FAQ
Updated for the Week of Aug. 31 - Sept. 4, 2026
What macro factors could influence SPY?
Interest-rate expectations, Treasury yields, employment data, manufacturing and services activity, inflation, economic growth, Federal Reserve commentary, and geopolitical developments could influence SPY this week. The main scheduled economic catalysts include the ISM Manufacturing PMI on Tuesday, the ADP employment report and Federal Reserve Beige Book on Wednesday, weekly jobless claims and the ISM Services PMI on Thursday, and the August employment report on Friday.
Stronger economic data could push yields higher and pressure equity valuations, while weaker data could support expectations for easier Federal Reserve policy. However, excessively weak data could also renew concerns about slowing economic growth.
How does Federal Reserve policy affect SPY?
A dovish Federal Reserve stance could support SPY by reinforcing expectations for lower rates or easier financial conditions. A hawkish stance could create selling pressure if Fed officials emphasize persistent inflation, resilient employment, or the need to keep rates higher for longer.
Traders will also watch scheduled commentary from Federal Reserve Governor Christopher Waller and regional Fed Presidents Beth Hammack and Austan Goolsbee. Their remarks could influence rate expectations even without an upcoming policy decision.
Why are corporate earnings important for SPY?
Corporate earnings provide a real-time check on economic demand, profit growth, margins, and business confidence. This week’s notable reports include Dell and Palo Alto Networks on Tuesday, Hewlett Packard Enterprise and Snowflake on Wednesday, and Zscaler on Thursday. Broadcom’s results will also be important for sentiment toward semiconductors, artificial intelligence, and technology infrastructure.
Strong earnings and positive guidance could support SPY, particularly if technology and AI-related companies continue to show durable demand. Weak guidance, margin pressure, or disappointing enterprise spending could weigh on the broader market.
How do company fundamentals affect SPY?
Revenue growth, profitability, free cash flow, debt levels, margins, valuation, and future guidance remain important drivers of the largest SPY holdings. Technology and semiconductor stocks deserve particular attention because weakness in heavily weighted growth companies can pressure SPY even when financials, industrials, or defensive sectors remain stable.
The market will also evaluate whether the AI investment cycle continues to justify elevated technology valuations. Strong demand and expanding earnings could support the index, while slowing growth or higher financing costs could increase downside risk.
What should traders watch during a volatile week?
Watch Treasury yields, the employment data sequence, Federal Reserve commentary, technology earnings, market breadth, and SPY’s key technical levels. SPY closed Friday, Aug. 28, at $769.35, with a session high of $775.30 and a low of $768.31.
A sustained move above $775.30 would signal improving upside momentum, while a break below $768.31 would weaken the short-term structure. Between those levels, SPY may remain range-bound and headline-sensitive. When rising yields, weak breadth, and disappointing corporate guidance appear together, the risk of a deeper pullback increases.
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