My Intel Trade Left Me Hungry

Yo Pit Crazies,

 

The best laid plans can go amiss.

 

When I put out my Intel Corp. (Ticker: INTC) idea, I did not expect much to happen for a week or two, at least. 

 

But I am watching the Invesco QQQ Trust Series 1 (Ticker: QQQ) power to new highs and INTC is starting to awaken.

 

The problem is that I just had some 1×2 ratio put spreads. I made some money, though not that much because INTC moved too much. But since I leaned the right way, I won. 

 

Now I want to win bigly, but I have to change the trade type.

 

Here’s what I’m going to do …

 

From Income to Capital Gains

 

Regular readers of Option Pit Exclusive will recall I talked up some INTC ratio put spreads not long ago.

 

I sold some 48 puts and bought some 49 puts 2×1. That left me with a slight credit and short implied for a very short period of time.

 

I thought INTC could test the lows and stay around $48 for a while before a trip back up, but that did not come to pass.

 

I lean long, meaning my preferred direction was up.

 

“Leaning” a position just means you have a bias, but not a big bias. The bias can get big later, but for now it is more flat.

 

      • Leaning Long: Stock going up is OK
      • Leaning Short: Stock going down is OK

Notice how I don’t say great. Semantics are important here.

 

If I want a stock to fly, I buy calls or puts and that is where I am with INTC now.

 

If I want a stock to sit and generate some time decay, I lean in a direction.

 

 

The IV is so cheap that I want to buy some calls because I don’t see how an Nvidia Corp. (Ticker: NVDA) is 2.5x the value of INTC.

 

I like the mid-50s by January in this hungry market.

 

The Rundown

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 used the rally yesterday to take profits, long with some Uranium banter:

 

Big Money Flow

Each week, Option Pit CEO Mark Sebastian looks at size institutional option buying with a twist.  He mostly buys calls or puts to ride the large momentum trades.

 

      • Mark is still rocking the Ford (Ticker: F) close with 161%+ gains now on the balance of the Jan. 17 calls.

 

Robinhood Trader:
Option Pit CEO Mark Sebastian uses the Robinhood Gamma Radar to find order flow in active MEME  names.

      • Mark has his Robinhood Trader mojo rolling with UVXY Nov. 5 puts closing for $1.20 with  50%+ gain.
      • And four RHT FuelCell Energy Inc. (Ticker: FCEL) 8.5-strike Nov. 19 calls closed for a 55% gain.

 

Volatility Edge & Volatility Trading Club:

Volatility Edge is run by Mark and uses the proprietary Option Pit VIX Light indicator to guide volatility trading. The Vol Trade Club is run by me (AG), and employs a long strangle strategy that seeks to use VIX future decay to pay for upside VIX, VXX and UVXY options.

      • The Option Pit VIX Light Red as we wait for the Fed today. Mark and I are short VIX and VXX deltas here.

 

Remember, a lot of vol strategies I use are market neutral. That means whether SPX or VIX go up or down, the positions still make money. This is a technique you can learn in the Volatility Trading Club and Volatility Edge!

 

To Your Trading Success,

AG

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