Is It Happening Again?

 

Yo Pit Crazies

 

First things first. If you missed Griff’s Power Income Trader launch yesterday, grab a coffee and watch it now.

 

Not only will you see how Griff is crushing inflation — but there’s a trade in there for you, too …

 

Now, the market is doing odd things, as Mark and I have noted recently.

 

What I do recognize is that the S&P 500 has been selling off prior to expiration for the last several cycles.

 

It might be at it again.

 

Let’s take a look, because each and every time, something surprising has happened.

 

Things Don’t Always Play Out As They Should

 

A lot of times the market is waiting for bad news to come out and the natural inclination is to bid up the volatility …

 

The rule is make the paper pay for your uncertainty.

 

Edge Hunter VBS sheet for SPY in the Nov. 24 cycle.

 

That was my rule as a market maker and I still use it. 

 

Except now I am on the other side and I try to figure out if the LP’s are making me pay too much for something.

 

Right now, as you can see with Edge Hunter, those big red blocks tell me IV is too expensive near term for what is happening in SPY.

 

Traders are expecting more to happen than what is currently happening.

 

The trade I will explore in the Trading Legion is a long call calendar in SPY plus a VIX call.

 

Think of it as, “Something big will happen or nothing will happen.”

 

I might get a chance to make money with both happening.

 

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.

 

I am adding Griff to The Rundown! Welcome aboard!

 

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 quiet today, as most of the market move was muted except for iShares Long Term 20+ year Govt Bond Fund (Ticker: TLT).

 

There is a lot of interest in Ford Motor Company (Ticker:F) as the below trade came from Big Money Flow.

 

 

 

To Your Trading Success,

AG

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