The market is breaking out again! But do you know what stocks to be trading options on? Because it sure isn’t AAPL. I’m on an extended run in our elite service Sharp B.E.T.S. — and you don’t want to miss out. Get in now!
Hey traders,
We have pointed out repeatedly that the SPX and the NDX are more similar than ever.
The top-five names in the S&P 500 make up 23% of the index …
The same names are 45% of the QQQ!
With vaccine news from MRNA following the recent announcement by PFE, it’s clear that the “stay at home trade” is coming off.
So here is a question I’m pondering:
“Where is the risk in the S&P 500?”
Is it the whole index, or primarily just the XLK I should be hedging?
If it’s the latter, one has to ask, “Would I be better off hedging a long SPY or SPX position with VOLQ?”
Remember VOLQ is an index on ATM IV in the QQQ.
Personally, I like being long SPY or RSP and hedging it with QQQ.
I think that produces outsized returns over the coming weeks.
An alternative would be long SPY and long VOLQ futures (VLQ), or preferably (when they list) call options on VLQ.
The VIX light is RED meaning that we expect IV to drop in the next 30 days.
Your Only Option,
Mark Sebastian
P.S. – I’m excited when they finally get VOLQ options going. We will be trading it in my trading service, “Vol Edge.” Once they list VOLQ options I’m going to up the price for my trading service that gives vol alerts. Those who got in have tripled their accounts. So get in and join before it goes up.
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