Yo Pit Crazies,
The only thing that surprises people anymore in 2021 is that the S&P 500 keeps going up — seemingly forever.
One of the reasons we started Capitol Gains was to help folks navigate the higher highs and the possibility of lower lows.
For instance, take a look at Ford (Ticker: F), which was very good to our Power Moves Portfolio pilot project, and I want it to continue with Capitol Gains. The IV is getting very low — that is a condition.
F three-month chart for price and volatility
You’ll notice the red, yellow and green lines in the bottom part of the chart are getting very cheap. Ford has an EV element now that the market finds appealing.
And it might make the cut into Capitol Gains. The trick will be to fit the trade to the condition I see. That will be one of the walk throughs today during the 10 a.m. Capitol Gains event.
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.
-
-
- We have a two-hour class today on lining up trades and managing them.
-
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 using the rally today to take profits:
-
-
- Pro student Kiran closed a RobinHood (Ticker: HOOD) put fly 50%-plus. Five red candles in a row there for that stock.
-
Trading Legion:
The Trading Legion is an intermediate-level education and a long strangle trading vehicle. The goal is to teach students the best times to buy options.
-
-
- I closed the Carnival (Ticker: CCL) Aug.20 23/27 call spreads for a 25% gain today and 30% net position gain. The Delta variant news is making holding short term calls a bit perilous.
-
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. VVIX is still well over 100, so protection costs are high.
-
-
- VE: Sell to close 5/10 VIX Aug. 18 18-strike puts at $1.20 for a tidy 50% gain from Mark.
- VTC: Trade No. 255 closed two VIX Aug.19 19-strike puts at $1.90 or better for a 70% gain on that put, but I need some more lifting to get back to even. I will most likely own some call spreads for even money.
-
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
