Yo, Pit Crazies,

How to find the edge is an endless pursuit.

We all have a different way to look for it and define it, but I like sticking with the stuff that has worked through thick and thin.

Stuff I learned when I first walked into trading pits 30 years ago.

Thirty frickin’ years ago!

• Biden

• Trump

• Obama

• Bush

• Clinton

• GW Bush

Thirty years is so long I forgot who was President when I started. I had to write it out. 

George Bush the first, it was.

Back to the edge.

Finding an edge is easy once you decide on what you want to look for.

Option Pit has ways.

Volatility  Edge is the most consistent trade out there

Vol edge is easy to identify but a bit hard to find.

You have to know what you are looking for.

Below is the chart of the SPDR S&P 500 Trust ETF (Ticker: SPY). Note how the implied volatility, the red line, is diving under the realized vol. Traders are marking down the options prices super fast.

SPY tw-month chart with IV in red and HV in blue.

So you’re telling me with new inflation numbers and more FOMC minutes this week, IV should be in the basement?

I don’t buy it.

Remember options are about buying the potential move – they are too cheap right now.

My SPY Master program is up on 7-of-7 closed trades with 1 up and 1 down open. The edge is real.

And look for my Edge Hunter “Easy Button” coming soon to add trades with edge.

Trade for Edge. Close for dough.

The Rundown

Big Money Shopper

Mark and Licia caught fire with Walt Disney Corp (Ticker: DIS) Nov. 25 97 call closed for a 119% gain.

 

OP Mentoring 

SPY, VIX Nov. 18/Nov. 14/Nov. 23 367 put calendar, 25 puts closed for a 3% gain

turning a loss into a win!

 

SPY Master

SPY, VIX Dec.16/Dec.21 393/384 put spread, 25 puts closed for a 13% gain.

To Your Trading Success,

AG