UCS Market Framework — June 7, 2025

$PEP, $BSX (Active) - $ETSY,

Apart from monitoring / opening the trades from yesterday’s watchlist PEP 0.00%↑ & BSX 0.00%↑. I have picked ETSY 0.00%↑ to watch far next week (6/9-6/13) from all the scan results today. In case you missed yesterday’s post - Scroll down for link.

TICKER 1 – [$ETSY - Etsy Inc.]

NEWS and Momentum -

• Analyst Target: Jefferies & JP Morgon set price target to $55 & $50, respectively.

• Short Interest: With approximately 22.37% (finviz data) of Etsy's shares sold short, the stock was/is susceptible to short squeezes, which can amplify upward price movements.

Setup – UCS#3: Momentum Exhaustion → Credit Spread Setup

We’ve seen a strong breakout recently, with above-average readings from UCS_RSG, signaling momentum was firmly behind the move. However, current UCS_RSG reading is showing early signs of exhaustion — a classic UCS#3 scenario.

This is where the energy is exhausted (not start to fade for a demise) after the breakout, and price enters a consolidation zone, expecting a retracement / consolidation pattern for 2-3 weeks.

Strategy Insight:

These kinds of setups are ideal for short-term Credit Spreads:

• Risk-defined, theta-positive trades

• Built to capitalize on cooling volatility or failed continuation

• Great when IV is still inflated, but momentum is cracking

  • Note - For next week options are pricing in larger IV than following week.

My Plan:

I’ll be watching for:

• Bearish reversal signs (e.g., shooting stars, failed follow-through candles)

• Divergence on momentum indicators

• Price failure near key resistance

If confirmed, I’ll enter a Call Credit Spread at 65 delta or less, within 15-18 DTE, figerscrossed IV stay rich. ;) lol. Following UCS_RSG, will guide me to be ahead of the herd.

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- Access June 6th, 2025 -

• Disclaimer:
  I am NOT a licensed financial advisor, investment professional, or registered broker-dealer. The strategies, indicators, and trade ideas shared here are for educational and informational purposes only. They reflect my personal opinions, research, and trading approach.

• Trading options and financial markets involves risk. Please consult with a qualified financial advisor or conduct your own due diligence before making any investment decisions. Use of this information is at your own risk.