Hey Traders,
Well, the market did not like what the FOMC had to say today.
But I have to say … This decision may set us up for even more short squeeze opportunities in the days ahead …
You know all about short squeezes, right?
How to spot them … how to play them …
How traders have been making millions off them …
If not, I’m going LIVE at 11 am EST to give you all the essential juicy details on squeezes … including a live trade. You need to see this.
Click this link for direct access. Hurry!
Now, about yesterday …
The S&P 500 (Ticker: SPX) at one point almost dropped 1% (holy cow, I know).
The VIX closed 18.15 on Wednesday, its first close above 18 since June 3rd.
The S&P had a wild ride, almost breaking below 4,200 before bouncing:
So on a day like today, I have to say I was a little surprised by the put-call ratio of traded options:
Trading activity has been picking up in VIX. Open interest is approaching 10,000,000 for the first time in a while…
But, today, puts out paced calls on a ratio of 1.4 to 1 …
What’s the deal with that?
My feeling is that the smart money is fading this VIX move.
The biggest trades today were put buys in July (again) …
Thus I think we are likely to see a rough start to the day on Thursday, but I would be looking to potentially buy to open a trade, as I think traders are playing ‘rope-a-dope’ with shorts …
The 17-strike puts for $1.00 are cheap. I will potentially be looking to buy those for even less …
Speaking of … don’t forget — Andrew and I will be taking a live trade at 11 am EST. Click here for direct access.
Your Only Option,
Mark Sebastian