Running Out of Upside Handles for SPX


Yo Pit Crazies,


As far as markets go, we are in uncharted territory.


I believe for the short term, at least, that liquidity is there and it will keep driving markets higher.  


We most likely won’t see a Zone 1 (10-12) VIX anytime soon, but at this point anything is possible.


As far as kicking butt, check out the Pro Chat Room activity in the Rundown section today.


Let’s just say the Pros stayed the course Mark and I set up over the last week or so. One of our Pros grabbed a 600% return from a Monday Night Pro Class idea he made his own.




I will say it again …




This was my Trading Legion idea Wednesday and I am on my way to my 4th close in a row for a win.


I bought some SPDR S&P 500 ETF Trust (Ticker: SPY) Nov. 12 465-strike calls Wednesday morning and bought a SPY Nov. 12 440/450/460 put butterfly.


Think of it as a funky strangle.


This was prior to the FOMC report, mind you. The market could have gone anywhere really. But surprisingly, shockingly, it went straight up!


The long strangle is meant for “the market could go anywhere, really,” but the trick is getting a good, cheap price and leaning in a direction. 


In this case I leaned a little long. If the news was bad, I would see 450 SPY in a heartbeat and I would take the small win and go.



The put butterfly offered a cheaper hedge with relatively light time decay.  I put more of my eggs in the upside basket, so to speak.


4,700 by Friday. Why not? It’s just another day with a Y in it.

Capitol Gains w/ Frank Gregory
Option Pit DC and Wall Street insider Frank Gregory and I run a portfolio approach to trading options with stocks that have good long-term prospects based on Frank’s K Street knowledge and my options expertise.

      • I closed my Canejo Corp. (Ticker: CCJ) call diagonals and rolled up to a December call. CCJ did not dip enough yet for me to sell my puts.


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 taking profits bigly moving into the close. Most members rode vol puts from VTC, RH and VE until they rang the cash register.


Below is a sample, Dave gave us that killer idea in the Pro Monday class.



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 grabbed 125% gains in his remaining Ford (Ticker: F) calls today.


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

      • Mark hit 74% gains in UVXY Nov. 5 16.5 puts yesterday.
      • I closed some turbo trade Robinhood Inc. (Ticker: HOOD) call spreads for 50%+ and I am holding the balance for a free ride.  HOOD is looking very squeezy.


Trading Legion:
The Trading Legion is an intermediate-level education and a long strangle/calendar trading vehicle. The goal is to teach students the best times to buy options.


      • I am up 20% on the SPY strangle I bought yesterday in class.  I expect to be out with double that by Friday.


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 Is Red as the FOMC tossed cold water all over the VIX Wednesday.


For the Vol Trade Club, I am up between 5% and 15% in the three open positions and still holding protective options in VIX upside and SPY downside.  It is doubtful that I need the crash hedge, but I got paid to own this cycle.


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,


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