CPI is 3% – Stocks Like It, UVXY Doesn’t
Yo Pit Crazies, I spent most of my morning on Wednesday closing trades. 4 of the 6 wins in the Rundown had my fingerprints all over them, so I’m going to say it was a good week. I do have a solid collection of SPDR S&P 500 Trust (Ticker: SPY) puts going out worthless, […]
CPI Vol Gets a Lift
Yo Pit Crazies, A big part of Option Pit is the fact that all traders here used to be Pro Traders on a floor or at a desk at a Bulge Bracket firm. Nothing like being in the trenches for 15 or 20 years to learn a thing or two. All of short […]
Market Pricing the CPI Too Cheap?
Yo Pit Crazies, Invesco QQQ Trust ETF (Ticker: QQQ) stocks went down yesterday. That should be a headline, but the mavens behind Invesco thought enough was enough with 7 or 8 stocks taking up 50% of the market cap of their QQQ ETF. They’re throttling back Apple Inc (Ticker: AAPL), Alphabet Inc (Ticker: GOOGL) […]
How to Trade a Strangle
Yo Pit Crazies, Check out the 10 day chart of the SPDR Oil and Gas Explorer and Production ETF (Ticker: XOP): Note that even in a strong bullish move, stocks can go down. I don’t know, nor care, why they go down, but after 30 years of doing this I know they can […]
Too Much of a Good Thing
Yo Pit Crazies, Yes, we are in a bull market! While yesterday’s selloff was rough it was also overdue. My Easy Trade system assumes a selloff happens so I have to be prepared. I had a way to trade and manage yesterday. More on that later. SPY 3 Day Chart Today’s story is about jobs, […]
Traders Are Waiting for a Selloff
Yo Pit Crazies, What is a market condition? It’s just a factor that can change the price of an option. That includes time, stock direction, and volatility. I trade all three, and I can even decide how much of one of those I want to trade. It’s odd to think of trading volatility, but it’s […]
Momentum in the Second Half
Yo Pit Crazies, Right now, I’m riding a pair trade in Nitro Trader for Delta Airlines Inc (Ticker: DAL) and American Airlines Inc (Ticker: AAL). A simple pair trade is just a long side in one stock, and a short side in another. This is a strategy Mark and I employ to create market neutral […]
Travel at Your Leisure
Yo Pit Crazies, I’ve been using my newest bull market strategy to trade Carnival Corp (Ticker: CCL) lately. The trade produced a 90% gain on the position overall. What surprised me is the strength in the leisure area after a big move. Some of you are thinking big tech is the only game. Not true. […]
What’s Dealer Inventory Got to Do with It?
Yo Pit Crazies, Tina Turner recently passed away in her Swiss Mansion after what appeared to be a full and exciting life. She famously asked in 1984 (yes I am that old), “What’s love got to do with it?” Well, quite a lot from the sounds of the song. Dealer Inventory is the options that […]
A Supreme Court Decision Rarely Moves a Stock
Yo Pit Crazies, One thing Mark and I covered last week was every Bull Market has a story. That’s my secret to trading long gamma-style trades – there has to be a story. When I buy options in individual names, I want a backstory so the stock has a potential to fly. Below I’m looking […]