Yo Pit Crazies

I’ll tell you what ain’t green – anything to do with energy … green, carbon or otherwise.

The shutdown in China is so affecting the news cycle that the algo-based news readers are selling into very low liquidity.

Just because Shanghai is out of business for a few weeks, all hell breaks loose as the VIX tip-topped 30 on Monday.

It was a good day to take profits, if you could.

Trading long only, though, the only good thing to close was long vol trades.

See my Volatility Trading Club post in The Rundown.

Oh! And I have good news for yo.

The VIX Rally Failed, but you don't have too

You will see below one of my students jumped to a 500%+ return on a Trading Legion idea.

The same idea I got “fished” on last week!

Note to self: stick to plan, don’t place stops too close.

What folks did not see who are not Trading Legion Members was the risk reward setup for that trade idea. We ID low risk, high reward and positive theta at the outset.

That means the market was paying the trader money, every day, to own that put.

Ken did the rest.

A similar setup is taking shape into the Fed Meeting Mar04.  It is very hard for implied volatility to go down.  If you like learning how to set up trades for yourself, become an Option Pit Mentoring Student.

I laid the trade idea in the a Pro Session here.

The Rundown

Capitol Gains w/ Frank Gregory

I closed some ExxonMobil Corp (Ticker: XOM) puts today for 100% gain. I now own the upside call spreads for near nothing to June expiry. I could close the whole trade for 30% gain today. But I think XOM rallies, so it’s a free ride up.

Option Shopper

Licia landed a big one with Delta Air Lines Inc. (Ticker: DAL) puts up 108% and she nailed the close.

Power Income Trader:
Bill Griffo rang the cash register again with Invesco QQQ Trust (TIcker: QQQ) put spreads for a 69% gain.

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. 

Ken L. showing how to ride a put properly to a 500%+ gain!  All from a Trading Legion idea. Also note he took the money.

Vol Trade Club

I closed part of my Proshares Ultra VIX Short Term ETF (Ticker: UVXY) strangles for a 10% gain leaving me with half my strangles in a 20% profit.  Now I will close whichever way UVXY goes, leaving me with contracts for credits.

To Your Trading Success,

AG