Yo Pit Crazies,
VIX is going up.
Apple Inc. (Ticker: AAPL) and Tesla Inc. (Ticker: TSLA) are holding up the market.
A new EV vehicle company called Sono Group N.V. (Ticker: SEV) just blasted off from a $15 IPO to a $48.
Things could be a mess for Thanksgiving.
More on that in just a minute, but first …
A Double Shot
Two pieces of tasty content coming right up …
- Check out the replay of Frank and me in Cap Gains: Charged Up from yesterday. It’s the latest tradeable new from the world of EV, government spending and minerals
We laid out winners, losers and exclusive trade.
Watch it here.
- HAPPENING TODAY: Bill “Macro Griff” Griffo is back with more of his winning play from the week — but, more importantly — he’s identified where he’ll be mining for profits next.
And given his ongoing success, who’s going to argue with him?
Register for your seat at this no-cost event now.
EV Stocks Have Lost Their Minds
One thing Frank and I touched on yesterday is the money going into green stocks and EV that started at Davos 2019 and has not let up.
This is a wave that is getting serious money.
Sono is an EV company that uses solar to power cars.
It has revenue — and the potential to go beyond the moon before things slow down
Rivian Inc. (Ticker: RIVN) ran to over 100 billion market cap from a $70 billion IPO and most likely wont deliver a car in 2022. That is a long time for the hype to build.
Lucid Group (Ticker: LCID) is running in a similar vein, with a 500 miles per charge car.
All really cool, expensive car companies with no revenue yet.
When things seem crazy, I look for stocks that can follow the trend but are reasonably priced.
That brought me to Ford Motor Co. (Ticker: F). The traditional auto giant didn’t do much during the COP26 climate summit. Most of the recent performance was on good, old-fashioned money making on the last earnings call.
F six-month price chart with 30-day IV in red.
I like the idea of selling put spreads here.Note the red spike in IV that Vol Man is riding down.
There was hot meme action buying calls, but I think the opportunity now is selling put spreads with the IV higher. $18 to $19 level is reasonable.
I will keep an eye on the other stocks as time progresses.
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.
- I added short F put spreads to the Cap Gains portfolio.
Other stocks currently in the CAPITOL GAINS portfolio:
- Regeneron Inc. (Ticker: REGN) long COVID therapies
- Mandiant Inc. (Ticker: MNDT) long Cybersecurity
- PetroBras SA (Ticker: PBR) long oil
- SPDR Oil and Gas Explorers (Ticker: XOP) long oil
- Intel Corp (Ticker: INTC) long chip shortage
- Powershares QQQ Trust (Ticker: QQQ) portfolio hedge
- Canejo Corp (CCJ) long Uranium Play
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.
Stay tuned for Bill’s show today.
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 yesterday on Fed Reserve moves for new Governors.:
STC half of posted Dec LQD 131/128 put debit spreads for quick + 26% as 44k more LQD Dec 131/128 went on up this am.
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.
- Mark grabbed some Pinterest Inc. (Ticker: PINS) call closes and went up for a 45% gain.
The Trading Legion is an intermediate-level education and a long strangle/calendar trading vehicle. The goal is to teach students the best times to buy options.
- I added some long strangles here in iShares Barclays 20+ year Treasury Bond ETF (Ticker: TLT), which I expect to close early next week.
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 Cboe Volatility Index VIX, iPath Series B S&P 500 VIX Short Term Futures ETN (VXX) and ProShares Ultra S&P Short Term VIX Futures ETN (UVXY) options.
The Option Pit VIX Light Is Red into the holidays. Still bullish SPX and bearish VIX, although up 1 point from Friday’s lows.
For the Volatility Trading Club, Trade No. 266 closed for a 10% 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,