Yo Pit Crazies,
First off, happy post-election day.
I’m sure we’ll see the country get back to civil discourse in no time!
Perhaps not.
If you are looking for positive vibes, stop by my SPYMaster open house today at 3 p.m. ET.
Also, if you want to reach your trading goals – and make money right now – check out my very special session on Thursday night.
Now … I have a confession!
I do not trade crypto currency
In fact, I have very little idea why it is so popular except that it is … kinda cool?
The problem for me is what value does it store? Currently you can exchange if for goods but that value is fluctuating.
Not to mention where the darn coins are stored? In an unregulated market, that’s where, kind of like it existed in 1927. Not too different from a bucket shop.
Without a central clearing function and third party authentication, that leaves some compliance and risk issues. Or just plain zero risk management. (And heck, one of my hats is risk manager for the hedge fund Mark Sebastian and I run, so that’s kind of important to me …)
Well, surprise, surprise … another crypto exchange has gone away. This time it’s Bahamas-based FTX.
If folks dump crypto, what do they buy?
They buy this!
Gold Is Making a 30-Day High
Griff has been all over this lately with some trades in Market Vectors Gold Miners (Ticker: GDX).
The chart above is Gold Trust ETF (Ticker: GLD). We did see a spike in implied volatility and good break out on some key levels.
This could be the precursor for inflation slowing down a bit, which would slow down rate rises, which would move gold higher.
That December cycle for gold does not look too bad to jump into. I would opine on the election, but by the time you read this, we might still be counting votes.
The Rundown
Pro Trading Room
Cat in the Pro Room running GDX like a crazy cat.
Vol Trade Club
I wanted to hold the upside calls but 400 looked unlikely after the fall from 390 last week.
Trade 316 SPY Nov. 18 400, 380/370 put vertical & UVXY Nov. 25 10 puts closed for a 3% gain. The worst scenario happened and managed a 3% gain anyway.
Option Shopper
Licia has the magic with Paypal Inc (Ticker: PYPL) Nov. 18 78/86 call verticals closed for a 87% gain
To Your Trading Success,
AG