Dear Trader,
Welcome to Trades from the Pit.
This is Charles Delvalle here, the editorial director at Option Pit.
Every week, I’m going to bring you the story behind two to four winning trades, told straight from the mouths of the traders who made them.
A lot of folks think options trading comes down to buying calls or puts, and maybe selling a covered call for a little extra income.
That barely scratches the surface.
Our traders are former market makers, and they use every trick options have to offer to make streams of steady income.
Licia might tell you about a trade she got in and out of within a few hours.
Mark might walk you through the time he caught big buyers shoving a stock around and jumped right on it.
Every one of our traders has their own way of turning option contracts into money.
These are approaches you’ll need to get familiar with. Once you see how powerful these strategies are, you’ll be itching to learn more and try a few yourself.
So let’s get going with the first one…
Election Day had defense companies nervous.
Republicans win, the contractors get more money. Democrats win, maybe that money goes to different contractors.
Andrew Giovinazzi didn’t pick a side.
He and Frank Gregory threw on a trade in L3Harris (LHX) that’d pay off no matter which way the thing went.
He breaks down the whole thing in the video below. And yeah, he explains how he set it up so sitting around waiting didn’t cost him a thing.
About 70% in a week. Off an order he put on and didn’t stress about.
I spent election night refreshing maps like an idiot. Andrew’s order was just sitting there, and when LHX tanked, he made money.
That’s why he’s the pro.
He and Frank go looking for stuff like this every week in Capitol Gains.
Frank’s the Washington guy (he also helps run a drone startup, because apparently one job wasn’t enough), and Andrew turns whatever Frank’s hearing in D.C. into a trade where time’s on your side while the news shakes out.
They’re live every Tuesday at 2:00 PM ET with a new trade.
Come hang out for the next one.
Charlie Delvalle
Editorial Director, Option Pit