Yo, Pit Crazies,
I don’t do this often but I will today. Yes, I have the flu and need to make myself feel better, so what better way than the AG bundle with 3 wins in a row for Cap Gains, 3 wins in a row for EZButton, and 9 out of 10 for SPYMaster. 15 out of 16 is not bad. I feel a little better.
Trading has been the only thing going well for me in 2023, so I have that, at least.
This year has also been good for stocks. One of my students pointed this out in the Pro Chatroom today:
From top to bottom the charts are …
- SPX
- 10-Year Treasury
- Dollar (Short Dollar)
- Gold
I must say, there does seem to be a little cold water on the SPX bull party.
It Appears the Market Is Changing Its Mind on Rates
Having smart students means there is always something interesting in the Pro Chat.
Wednesday was quiet in the market but the drop in interest rate-sensitive products was a great observation,
- Bonds down means rates up
- Short dollar down means rates up
- Gold down means rates up
SPX down today after three 2% moves up and down yesterday.
It appears the rate question is still at play in investors minds. Why anyone at this point would think J-Pow will do anything different than he has said to regain credibility has not been paying attention over the last year. I thought that was a foregone conclusion and VIX would aggressively drop this week.
VIX did drop for about 20 minutes on Tuesday …
So Thursday could be ugly if the VIX pop is any indication.
Then traders are less sanguine about the speech after all.
Or just buy my bundle and have SPYMaster help navigate the ups and downs in VIX and SPY.
The Rundown: A Look at What Is Trading Around Option Pit
Cap Gains
Scotts Miracle Gro (Ticker: SMG) Feb17/Jan20 60 call calendars, Advisors Shares Pure US Cannabis (Ticker: MSOS ) Feb17 7 puts closed
for a 70% gain
Nitro Trader
Mark and I closed out Chevron Corp (Ticker: CVX) and DH Horton Inc (Ticker: DHI) Mar17/Feb17 180, 95 call calendars for a 33% gain
Win the Week with Bill Griffo
SPY Feb10 411/412 call vertical spread closed for a 84% gain – in just 20 minutes!
To Your Trading Success,
AG