Yo Pit Crazies,
The Glasgow Summit is in full swing and the world leaders are sure busy trying to figure out how to save the planet.
Who is partying at the Conference of the Parties (COP)? There are 400 private jets parked in Glasgow, after all.
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Back in the USA, Federal Reserve chairman Jerome “J-Pow” Powell is trying to save America with the taper. Meanwhile, can the country afford a progressive, green agenda? We’ll know on Wednesday where Griff, Mark and Frank get down with how the Virginia election and November fed meeting played out. Join them live starting at 4 p.m. EST and get a month of Mark’s BIG MONEY FLOW, to boot. Register now.
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Well, Russia and China, two of the world’s biggest polluters, aren’t in attendance
Of course, that is a reason to still like fossil fuels, as Frank Gregory and I do in CAPITOL GAINS.
I do care what the market thinks as it picks winners and losers. Let’s just stick with the winners for now.
What is interesting is the value of green stocks heading into this summit — they’re going up.
Especially Tesla (Ticker: TSLA).
Another noteworthy name I follow is The Guggenheim Solar Trust (Ticker: TAN). QuantumScape Corp. (Ticker: QS) is yet another.
Let’s do a head to head comparison and see if the conference is helping.
Quite a Ride
TSLA is up almost 300 points since Monday, Oct. 25.
That is near a crazy 31% in a week!
QS is up about 30% in a week.
TAN is up 13
TSLA one-week chart.
TAN one-week chart.
QS one-week chart
Percentage gains are percentage gains.
QS has some new battery tech for lithium that could be a game changer. The stock was as high as $120 last year. If things go bad, the stock could be way below $20 from its current position at $29.
That is the kind of potential move that lends itself to a long strangle.
I am looking at QS for CAPITOL GAINS and would like to ride it for at least the balance of the COP26.
I expect these moves to continue as the hot air keeps blowing in Glasgow. The implied vol is not cheap in QS, but the relative moves are not cheap either.
The Rundown
Capitol Gains w/ Frank Gregory
Option Pit DC and Wall Street insider Frank Gregory and I run a portfolio approach to trading options with stocks that have good long-term prospects based on Frank’s K Street knowledge and my options expertise.
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- I closed my Smith and Wesson Brands (Ticker: SWBI) calls yesterday for a 16% gain. I am closing some Canejo Corp (Ticker: CCJ) call diagonals for a 10% gain.
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Pro Trading Room:
The Pro Room is Option Pit’s live access to Mark and myself during trading hours. Our Pro students post trade ideas with Mark and me during the entire trading session.
The Pro Room was cautious into the taper talk on Wednesday.
From Kiran-
Big Money Flow
Each week, Option Pit CEO Mark Sebastian looks at size institutional option buying with a twist. He mostly buys calls or puts to ride the large momentum trades.
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- International Game Tech Inc. (Ticker: IGT) is still producing with 32% gains currently.
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Robinhood Trader:
Option Pit CEO Mark Sebastian uses the Robinhood Gamma Radar to find order flow in active MEME names.
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- Mark jettisoned half of the Fuel Cell Inc. (Ticker: FCEL) for a 58% gain.
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Volatility Edge & Volatility Trading Club:
Volatility Edge is run by Mark and uses the proprietary Option Pit VIX Light indicator to guide volatility trading. The Vol Trade Club is run by me (AG), and employs a long strangle strategy that seeks to use VIX future decay to pay for upside VIX, VXX and UVXY options.
The Option Pit VIX Light Is red and we expect to see steady VIX until Wednesday.
Remember, a lot of vol strategies I use are market neutral. That means whether SPX or VIX go up or down, the positions still make money. This is a technique you can learn in the Volatility Trading Club and Volatility Edge!
To Your Trading Success,
AG