Decay the Halls

Salutation,

 

Yo Pit Crazies,

 

What am I giving my Option Pit students this Christmas?

 

More Option Pit stuff!

 

The Option Pit team is taking a breather from live sessions next week, but I will still be keeping an eye on things for you.

 

My Option Pit Exclusive newsletter will provide video goodies to everyone.

 

You’ll have access to highlights from across our classes, plus …

 

I’ll tell you about my trading secret and how you can get the market to pay for your option juice. 

 

It can be done!

 

Now let’s take a look at how Trading Legion got a day of free decay …

 

Free Decay for Trading Legion

 

The trade was as follows …

 

TL SPY put butterfly BTO 2/4/2 SPY Dec. 29 450/460/470 put flies for $2.75, BTO 2 SPY Dec. 29 470 calls for $1.20

 

When I posted the trade just after the Trading Legion class, the call and put fly had no theta.

In fact, the theta number was positive. That means I had a “free day” to hold a position that would pay from 460 SPY to as high as the market could go.

 

So we would make money if the market went up or down, with no decay.

 

The risk I took was that we would not drop below 455 SPY on Thursday and even then the trade would be around even.

 

I closed the calls yesterday for $2.94 and $3.60, which means I am into the put flies for $.68 and they closed $1.70.

 

I am up $100 per spread. Let’s see what happens on Monday.

 

This is the kind of trading expertise that you can learn in Trading Legion and Option Pit Pro – smaller market risk with larger potential returns.

 

The Rundown

 

Option Shopper

Licia Leslie puts on her best trading shoes to find option bargains using market making and charting experience. Generally debit options and spreads with low risk, high reward setups. Short hold times are the norm.

 

• • • Licia is having a riot of time with Riot Blockchain Inc. (Ticker: RIOT). She knocked out a 99% gain.

 

Capitol Gains

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.

 

• • • I added some long calls in ExxonMobil Inc. (Ticker: XOM) today. 
      

Other stocks currently in the CAPITOL GAINS portfolio:

 

• • • Mandiant Inc. (Ticker: MNDT) long cybersecurity
    • SPDR Oil and Gas Explorers (Ticker: XOP) long oil
    • Cleveland Cliffs Resources (CLF)
    • Ford Motor Company (Ticker: F)

 

Power Income Trader:

Power Income Trader is a systematic approach to trading inflation. By pulling real-time data from the Fed, US Treasury and Gov’t, Power Income Trader alerts users on changes in money flow driven by Fed policy. Bill’s system puts you out in front of the most powerful money flow in the world.

 

Griff will be back after Christmas, but it’s not too late to get in on his 80% win rate.

 

He likes Fuel Cell Inc. (Ticker: FCEL).

 

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.

 

• Coupang Inc. (Ticker: CPNG) is totally closed with over 50% returns this week.

 

Robinhood Trader:
Option Pit CEO Mark Sebastian uses the Robinhood Gamma Radar to find order flow in active MEME  names.

• • • Mark added some Pro Shares Trust Ultra VIX Short Term Futures ETF (Ticker: UVXY) puts that are up a crisp 37% – and 61%!

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 selling puts and put spreads on the slowdown into the holiday week.

 

 

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 Cboe Volatility Index (VIX) future decay to pay for upside iPath Series B S&P 500 short-term VIX futures ETN (VXX) and Pro Shares Trust Ultra VIX Short Term Futures ETF (UVXY) options.

The Option Pit VIX Light Is Moving And Still Yellow. Realized vol in SPX is still very high.

 

My VTC Trade No. 274 is up 10% on risk right now and I started closing the VIX Jan. 19 20-strike puts at 1.60 for a 60% gain.

 

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