Yo Pit Crazies,
Jerome Powell still seems to think that inflation is transitory.
Meanwhile, gas prices are up 80% and there is a war in Europe – neither of which are deflationary.
And when was the last time you saw a full shelf of groceries?
If this is the Green New Deal I want no part of it.
But I didn’t hear anything in the State of the Union suggesting a pullback , so we have to make do.
Welcome to the No-Fun Green New Deal.
As some guy used to say, “Sad!”
But what’s this?
I have a very fun trade for you coming via Capitol Gains
Tough Sledding Short Term
Right now, short-term trade ideas are tough.
In Trading Legion, I found a low-cost Apple (Ticker: AAPL) backspread, but opportunities are mostly long-term.
I don’t think Putin is leaving Ukraine, and at some point the western market will get past it.
Markets will stay volatile in the short term
If we are stuck with the No-Fun Green New Deal for at least 10 more months, we might as well find a gem.
Take a look at Clean Energy Fuels Corp. (Ticker: CLNE).
It makes money, has revenue and until recently was a $10 stock until the TNFGND got whacked in November. Now it is a $7.50 stock.
1 year chart for CLNE with 360 day IV yellow line on the bottom.
I bought some Jan. 2023 calls in here for Capitol Gains and I like the low IV way out there.
Cheap, cheap, cheap
The Lesson: The push for alt energy is not going away. Get on the ride.
The Rundown
Capitol Gains w/ Frank Gregory
I was able to close the Ford Motor Company (Ticker: F) trade for 13% gain.
Power Income Trader
Bill and I closed the Northshore Global Uranium Trust ETF (Ticker: URNM) butterfly for 1.65. I just took the small dollars since the liquidity was so low.
Bill’s Palantir Technologies Inc. (Ticker: PLTR) play will most likely get called away.
Nitro Trader:
Option Pit CEO Mark Sebastian uses a formerly private strategy for trades that can profit in either direction.
Mark closed the SPDR Dow Jones Industrial ETF (Ticker: DIA) leg of his first Nitro Trade for 41% 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.
The Pro Room was active closing on the bounce today:
And a cheap downside:
Big Money Flow:
Mark closed all of Cleveland Cliffs LLC (Ticker: CLF) calls for a 88% net gain.
Volatility Edge & Volatility Trading Club:
The Option Pit VIX Light Is Green, as the market for VIX futures is in full backwardation. SPX is inching to 40%.
In the VTC I closed Trade No. 283 for a net 13% gain.
To Your Trading Success,
AG