Capitol Gains Watchlist 11.01.2022

Dear Cap Gainers,

Below is the Watchlist Plus that I am watching from the original lists from Frank and Griff for names that are important.  Anytime option pricing or underlying pricing moves to an extreme or a significant event is at hand, I will add to our active list.

Right now I am looking for MORE EXPENSIVE IV for a post FOMC credit spread. Most of the focus is in energy since supplies are still tight and China could start importing enmass again.

 In my active watch list that will show up in red on the Sigma on the right.  Where Sigma is green I would look to buy those options.

BE

BE is a Frank favorite for hydrogen.  The company is very close to profitability and might work as an in the money diagonal call spread.

BP

Earnings are out and IV is high.  BP sets up better as credit put spread to capture the dividend on Nov11th.  

CLF

Metal IV is relatively low.  If the recession narrative does not hold, these names should do well.  I am still riding some calls here.  I like CLF for a bounce into the end of the year if the worst doom and gloom does not come true.

FXI

Will or will not China leave the Zero COVID policy that has wreaked such havoc on the population. FXI calls look relatively cheap and a Diagonal Call spread could play here.

GDX 

GDX is working a short term downdraft with just fair option prices.  I saw the Dec cycle as a little cheap relative to the end of year move potential.

KMI

Options are relatively cheap in KMI and notice the 10 day rally in this stock.  Energy names are very strong right now.  This might make a nice diagonal call spread and keep the longer term IV in the long term cycle.