How Cold Will the Winter Be?

Yo, Pit Crazies,

 

Griff and I will get down to brass tacks on Thursday as we discuss the issues going into the Winter of 2022.

 

It might get chilly and you will need to bring a blanket.

 

The big question on folks minds is the CPI number coming out this morning.

 

The market is leaning hard on the fact it will come in around 8%. The four-day rally in the SPDR S&P500 Trust (Ticker: SPY) is saying it expects a light number too.

 

Below is a chart that might have different ideas.

 

 

Click here to see what it is!

 

SPDR Gold Trust ETF (Ticker: GLD)

Gold is starting to talk.  

 

When I see the subdued realized vol in GLD – blue line chart at the bottom – the market is not giving gold much of a place. The strong dollar has something to do with it but not long ago GLD was 190

 

 

GLD IV is perking up and the price is moving off the bottom

 

There is a case for a jump in commodity prices if the Fed walks back early. The dollar could lose some of its luster as well.

 

Bill and I will talk big commodity plays on Thursday, but option prices are still very cheap in GLD.

 

Too cheap, I think.

 

The Rundown

 

OP Mentoring Div+

I closed my AT&T Corp (Ticker: T) put rolls for a 24.7% return.  I might look to re-up, but the premiums are too cheap to sell here.

 

Big Money Shopper

Licia and Mark closed some Apple Inc. (Ticker: AAPL) calls for a 121% gain.

 

To Your Trading Success,

AG

Andrew Giovinazzi

Andrew Giovinazzi

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About the Author

Andrew Giovinazzi

Andrew Giovinazzi

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

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