Yo, Pit Crazies,

An important mantra around Option Pit is “trade for the condition.”

The issue most traders face is identifying the condition.

The easy way to describe it is the side the liquidity provider would take when they entered the position.

Sometimes the grass is greener and the Easy Trade Button delivers the greenest grass – that is to say, the best trade type for any market condition – at the push of  a button.

Over in Capitol Gains, Frank, Griff and I like energy, and especially suppliers of products to help create clean energy. Like all commodities, the prices come and go.

Frank’s thesis is simple: It will take energy to mine and produce any new generation of clean energy production – a lot of it.

That makes the energy producer below interesting.

Let’s see which one it is …

Drum Roll Please

This Is nat gas stock South Western Energy (Ticker: SWN).

Right now, stocks are soft.  The inflation issue is still with us and it is making the upside catalyst weak.

The short term lift from the Fed slowing the pace of rate hikes has totally disappeared. I thought that would keep stocks buoyant for a while, but that is not the case right now.

Poor inflation numbers in Europe made things softer, which makes me less aggressive with my new long positions.

And it makes for different conditions on how to approach stocks I want to get into. For SWN, I am selling puts for 4% yield for one month and looking to take the stock at one-year lows.

Sometimes the market is not giving much, so I will take what I can get and move on.

I will use the put proceeds to fund upside when things brighten up.

To Your Trading Success,

AG