Eyes on this Automaker

When you own as many VIX puts as I do, you would think a .02% move in the S&P 500 would set your heart aflutter.


To riff Winston Churchill “never has so little done less for so many.’”

VIX was down 1.5 today after lackluster Fed minutes. Still, the elusive selloff in VIX that many of my Pro Roomies have grown accustomed to has not materialized.

It may happen this week.  


Let’s talk about Ford (Ticker: F)

President Biden likes F.

My trading partner Frank Gregory likes F.

Frank and Biden actually crossed paths back in the day.

So let’s ride with F!

And you can hear more tonight at 8 p.m. during our live event.

For now let’s just say, Frank Gregory knows people.

Read on …

An A for F

F after-hours action

After hours, Ford is up .50 and, considering the chip shortage and idled plants, F did well.

If you are following the Power Moves Portfolio, you know we like F for the EV F-150 pickup.

The F-150, after all, is the best selling vehicle in the world for the past 39 years.

I have a broken wing F Aug. 20 14/13/10 put butterfly in for $.11. That essentially gives me the 14-strike put for nearly nothing and I will trade against it.

I will spend today either selling puts or buying some calls since my hedge is near free.

Into earnings I wanted to lean long, but not aggressively so …

And I figured it’s easier to lean long F at $12 than $14.  Since $12 is the breakeven of my fly, that is my long entry point.  

That is a trick — and will use those kind tricks in the Power Moves portfolio until the cows come home … or until VIX prints 12.

Whatever comes first.

At this rate, I think it might be the cows.

The Rundown

Power Moves Portfolio 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.

The live Power Moves Portfolio trade log is here.

      • Look for a Power Move in F today!

And don’t forget about our live event tonight at 8 p.m. EST.

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

      • Mark has his RH mojo back, this time with a 33% close in AMC Entertainment (AMC)

Trading Legion:
The Trading Legion is an intermediate-level education and a long strangle trading vehicle. The goal is to teach students the best times to buy options.

      • My Carnival Corp (Ticker: CCL) call spreads and puts are back to even as the Delta variant news dies out. I would like to close the call spreads with CCL around $24.

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. VVIX is still above 100 but gave a little more back yesterday. FOMC minutes barely moved the needle for volatility.

Earnings continue to be very strong so I expect VXX to see the 28 handle this week.

For the Volatility Trading Club …

      • I closed more VIX Aug 19/27/35 call butterflies for a 25% 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,


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