BY ANDREW GIOVINAZZI
March 25, 2024
Yo Pit Crazies,
The Easy Trade Button is rolling into the Trading Desk where strangle trading gets front and center attention.
If you want to learn how to trade long contacts, this will be the best place to do so.
The Trading Record is here 5 of 5 profitable services are not too shabby.
Earn while you learn.
If you threw in Pro it would be 6.
Speaking of Pro, you do get all the OP Services which means you got Mark’s killer SPX strangle from the Trading Desk.
My Pro group gets my daily stream of consciousness in the Pro Chat.
If you are a more active trader or investor you might want that.
For weeks and weeks Mark and I talked on this trend of higher VIX and higher SPX.
That has kept me long SPDR S&P 500 Trust (Ticker: SPY) and long VIX for several weeks.
That trend broke this week.
I closed my SPY upside.
How to trade it now?
I am buying VIX strangles in all terms
I am doing this in the Pro Room only right now.
This is a trade I will drip into meaning i do not want to go full allocation at the beginning.
If VIX settles near 13 or lower, many VIX Apr puts will trade in the money.
That value would more than cover the price of the call.
It sounds like free money but the cost is waiting.
VIX is 13.06 and the VIX Apr17 15 puts are 1.34.
I use that “intrinsic value” to buy VIX calls in Pro and or SPY puts in Weekly Profit Cycles.
Most of my WPC sessions are teaching students how to run basic carry strategies like this.
It is like watching paint dry and hard for new traders to wrap their heads around.
The trade also provides the cheapest, best portfolio insurance around.
The key is to take profits in the VIX puts as early in the cycle as possible.
Understanding how to buy options well is a skill one can learn.
That is something traders can learn in the Pro Trade Group on a daily basis.
With stocks at all time highs, that is a skill newer traders might want to acquire.
To Your Trading Success,
-AG
Andrew Giovinazzi
30-Year Trading Pro
See what's hot at option pit
CAPITOL GAINS: SMR Aug16 7 call closed for a 150% gain
DELTA STRIKE: VLY Mar15 8 puts closed for a 88% gain
PFE May17 26 calls closed for a 66% win
OP MENTORING: SPY Mar22/19 510 put calendars and 520 calls for 6.4% gain
OPTION SHOPPER: ERX Mar28 65 calls closed for a 90% gain