BY MARK SEBASTIAN
August 2, 2023
Hey Trader,
It’s Mark Sebastian, back again.
Hopefully, you were able to pop into the free session earlier today when Andrew, Licia, and Griff got together to share their takes and their strategies for turning the U.S. Credit Downgrade into a trading opportunity.
(We will send that link out to you as soon as our team has it ready — in case you couldn’t see it.)
I have been busy taking care of family things so I wasn’t able to make it to the live show, but I did record a short video late last night — because I know how important this week will be for trading.
In this clip, I shared my plan for the rest of the week, some expectations I had about trading today, and how I plan to take advantage of the trading opportunity this historic switch will provide:
I walked through:
- My prediction of selling today (which turned out to be accurate),
- The precedent of the last U.S. Downgrade in 2011,
- Where I think we will see buying and selling this week,
- And how I plan to trade this week…
I will likely trade a strangle tomorrow or Thursday with members and I will watch the VIX curve for any shifts. If the curve moves into backwardation, that will be a big sign that I may want to find some longer-dated plays in VIX.
I’ll be back again tomorrow for a follow-up.
Your only option,
Mark Sebastian
Mark Sebastian
Founder & CEO, Option Pit
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