SPY Options Trades Week of July 20State Street SPDR S&P 500 ETFBATS:SPYheavydiligenceSPY is trading right under a major decision zone after gapping down chopping around the 743.20 intraday level. The chart is still coiling between the 740.00 key daily level and the gap breakdown area, with the 760.40 ATH area sitting much higher as the next major upside target if the gap is reclaimed. I've mapped out three scenarios for the coming sessions: 🟢 Bullish Scenario If SPY can cleanly reclaim the gap and hold above it, that opens the door for a push back toward 754.00 A confirmed move above would put ATH continuation on the table, but that likely needs strong follow-through and isn’t the base case yet. 🔴 Bearish Scenario If the 743.20 area loses and price starts failing beneath 740.00, the move lower can accelerate fast toward 736.00 and then 731.00. Note, the bearish move could initially look like a gap fill and continuation, but if buyers don’t step in quickly, the tape can dump back down quickly 🟡 Sideways Scenario (My Lean) SPY stays trapped between 740.00 and the gap area while market participants wait for direction, with 744 acting as the midpoint magnet. This is the scenario is till very much game for good trades as the chop box could be 8-9 delta or bigger giving us ample opportunity My Outlook If I had to rank the probabilities today: 🟡 Sideways (my current lean) 🔴 Bearish 🟢 Bullish breakout A reclaim of the gap with significant push from chip stocks would force me to respect more upside, while a clean break below 740.00 would shift the bias toward downside continuation. Until then, the chop range is still the most likely path. As always, the Heavy Diligence Options Signals Indicator will be my primary tool for entries and exits. While these scenarios provide the broader roadmap, the indicator is designed primarily for day trading on shorter timeframes, helping identify higher-probability Call and Put opportunities. Combining those signals with key technical levels helps improve risk management instead of simply guessing the next move. A side note on the indicator if you prefer the old V1.2 turn off the confirmation layer. If you want to learn more follow on X there is a lot covered on there Disclaimer: This is only my interpretation of the current chart and is not financial advice. Always do your own research, wait for confirmation, and manage your risk before entering any trade.