Yo Pit Crazies!

Well, the cost of ballrooms could get more expensive as we wait for the first major number out of the Bureau of Labor and Statistics in about three weeks. 

The Consumer Price Index comes out on Friday morning.

Now for all of you who have been in a box for the last three weeks: the government is shut down. No statistics are coming, but that isn’t stopping Donald Trump from building a new ballroom with the help of donor money, which, of course, is lighting a firestorm on Twitter.

When you see a new ballroom like that, it’s gonna take lots and lots of glass. And speaking of glass, Mark had quite a trade in our free open room in Delta Strike on Corning Glass (GLW). That room is free for anybody that would like to attend and get a sneak peek on Friday. 

Click here to register.

Now let’s get into what’s happening in the market.

Things are getting…volatile

VIX broke decisively through 18 as traders bid up stocks once again close to all-time highs. But we do have this huge CPI number coming, and historically, stocks have really moved after that number.

A 2% Move in Spy is Baked in the Cake

Right now, the straddle in SPY (that’s the call and the put to expire October 31st on Halloween) is priced around $12. That means traders think the market’s gonna move at least 2% over the next week, and I cannot disagree with them.

We did a straight moon shot on Wednesday from the dead low to the dead high today of over 10 points in SPY. 

So why can’t we do it again?

Don’t Be a Chicken; Buy Calls

Earlier in this week, I said don’t be a chicken and buy some calls. Well, I think really no matter what the CPI number is, stocks want to rally. 

Earnings have been robust. And at this point, with Congress shut down, they can’t spend any more money, so the market likes it.

While the shutdown does make the market illiquid, that also means the potential for the market to move is greater. 

I set up a strangle in our Pro Class on Thursday afternoon, and I expect some big moves come Friday, Monday, and Tuesday into next week out of the SPY.

Free Opportunity

Once again, you’ve got a free chance to look at the big money flow with Mark at 12:00 PM Eastern Time on Friday afternoon.

Click here to join him.

And don’t forget: Buy some freakin calls!

To Your Trading Success,

AG