BY MARK SEBASTIAN
November 17, 2023
Hey Traders,
I am writing this at 9 PM Central time….why?
Well I was planning on writing it during Frank Gregory’s presentation that took place at 6 CT…but his information was so valuable I literally couldn’t write…I HAD to listen.
He revealed a defense stock that he thinks is going significantly higher…and gave away some hints about 2 more names.
If you didnt watch the presentation…do it now…it will be worth your time…I promise.
Click here to watch the replay….(insert link)
The S&P 500 closed up just over 5 points on Thursday…the VIX…actually closed up.
While the S&P 500 was lifted by the Magnificent 7, as a whole…the market was actually down.
The Dow closed down 45 points and the Russell 2000, it closed down an UGLY 24.28 oints good for down 1.35%.
This is why despite the inside day for SPX, VIX closed up on the day.
But…we are heading into a holiday week. Traditionally the week of thanksgiving is slow and generally mildly bullish.
Will that trend continue?
Right now, the VIX is actually saying yes.
Check out the VIX curve:
December, which just became the front month option is priced only .85 above the cash index.
Remember, futures are usually right, this means that the VIX is probably going to 13.5 or maybe 13.
Futures might not drop much over the next week though…market makers are really good at pricing in future VIX drops around the holidays.
That said, Friday also happens to be expiration…there is a lot of paper coming off the books.
This is going to free up the market to make some moves over the next week.
No…we do not have any big news hitting…although I would point out…NVDA reports next week…if they miss…look out.
So what do you do into the holiday…
- Enjoy time with your family
- Buy strangles on AAPL, MSFT, META, AMZN, GOOGL
- Sell an iron condor over the top in SPX
That trade will probably make me (and hopefully you) some decent cash. If you want to see the exact positions I’m taking and when to exit – give us a call and we can start trading in our room together. XXXXX
I’ll be back later today with my week-in-review video.
Your Only Option,
Mark Sebastian
Mark Sebastian
Founder & CEO, Option Pit
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CAPITOL GAINS: SMR Aug16 7 call closed for a 150% gain
DELTA STRIKE: VLY Mar15 8 puts closed for a 88% gain
PFE May17 26 calls closed for a 66% win
OP MENTORING: SPY Mar22/19 510 put calendars and 520 calls for 6.4% gain
OPTION SHOPPER: ERX Mar28 65 calls closed for a 90% gain