Licia is refreshed from her vacation and ready to go shopping. See the tricks of the trade that allow her to navigate these choppy waters of the last month on Thursday Evening.
Yo Pit Crazies,
If the last month has taught the EU anything, it’s don’t trust Vlad.
It turns out that getting all your energy from a reincarnation of Peter the Great might create more problems than it’s worth in terms of convenience.
Weird how that works.
The green energy folks will still jump on this even though alternative sources will take years to develop.
Let’s look at the green shoots.
Meme Darling Quantumscape Inc. (Ticker: QS) Is Lighting It Up Again
QS has been on the watchlist for some time in Cap Gains. Below I will detail the trade Frank and I have on that is doing nicely – but really the change here is volume and volatility.
The stock has come out of the doldrums on a jump in option volume and is now in the top 100 for activity of all active option classes.
QS one-month candlestick chart with 30-day IV in red on the bottom.
That is usually a sign of more action to come when a quiet stock becomes active again. There will be a lot of churn in the markets when algos start to jump on any news of a ceasefire, if it happens in the Ukraine conflict.
Oil names most likely will sell off and alt energy names could be en vogue again. Those are all names we follow in Cap Gains and we will be ready.
Licia liked the QS chart so it is handy having her around to help confirm a break out. Check her out Thursday.
The Rundown
Capitol Gains w/ Frank Gregory
I am long the QS May 20 25 calls and own them for a credit. I rolled up the 20 calls and the credit options were too good to pass up. QS was in the low 40s in late November.
I am cueing up Canejo Corp (Ticker: CCJ) as headline news is pushing down uranium stocks from their recent highs.
Power Income Trader
Stay tuned for Bill and myself as we hit Power Gains on Thursday morning. Call Customer Care at 1-888-872-3301 to join us.
Option Shopper
Licia booked some 86% gains in British Petroleum LP (Ticker: BP) this week.
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 looking at Fidelity National Information Services Inc (Ticker: FIS) and Walt Disney Co. (Ticker: DIS) :
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 back with a 23% gain in Delta Air Lines Inc (Ticker: DAL) calls. That was a nice scoop on the reopen trade thesis.
Volatility Edge & Volatility Trading Club:
The Option Pit VIX Light Is Red. If the crisis winds down we will most likely see lower VIX into the mid teems this week or next.
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