Yo Pit Crazies,
Welcome to Tradefest Day! Mark, Licia, Bill, Frank and Myself will pull you across the trading finish line today with tips, tricks and trades. Put your trading cap on!
What is a next level trade you ask? The simple answer is one that has success baked into the start of the trade. A kickstart if you will.
It is like cooking with good ingredients. Start with something tasty and there is a much better chance of ending up with something great.
That’s how we do it at Option Pit and how I will show you today.
Options Trades Have Several Moving Parts
Have you ever bought calls only to see the stock move higher and the calls lose value?
That is a total bummer and it has happened to almost anyone who has traded options.
Wouldn’t you like to see how to avoid that mistake? Get in the driver’s seat with control!
Tune in this to Tradefest at 11 am!
Ford Motor Company (Ticker: F) has been a straight moonshot for several weeks now.
F 3 month chart with 1 day candles up top and realized and implied volatility below
Wouldn’t you like to know the best way to trade it? What is the best option position?
Calls and Puts
And the list goes on. iwill drop hints and show the way. There is a best position for what is going on. It just takes some education, or Option Pit, to help find it.
Today is your day. Make it count.
Licia Leslie puts on her best trading shoes to find option bargains using market making and charting experience. Generally debit options and spreads with low risk, high reward setups. Short hold times are the norm.
- Licia put on her shopping shoes with gains in Palantir Technologies Inc. (Ticker: PLTR) calls and is keeping them going.
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 jumped back into Exxon Mobil Corp (Ticker: XOM) and the call diagonals are up 10% as of the close.
Other stocks currently in the CAPITOL GAINS portfolio:
- Mandiant Inc. (Ticker: MNDT) long cybersecurity
- SPDR Oil and Gas Explorers (Ticker: XOP) long oil
- Ford Motor Corp (Ticker: F)
- ExxonMobil Corp (Ticker: XOM)
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 added SPDR S&P 500 stock trust ETF (Ticker: SPY) calendars with a put for a next level, 0 decay trade in SPY from 477 to 0 for the next 3 days.
Power Income Trader:
Power Income Trader is a systematic approach to trading I. By pulling real-time data from the Fed, US Treasury and Gov’t, Power Income Trader alerts users on changes in money flow driven by Fed policy. Bill’s system puts you out in front of the most powerful money flow in the world.
Bill’s will spell out the Fed moves this afternoon.
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.
Trevor posted a win for a bit over 150%.
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 Cboe Volatility Index (Ticker: VIX) future decay to pay for upside iPath Series B S&P 500 short-term VIX futures ETN (Ticker: VXX) and Pro Shares Trust Ultra VIX Short Term Futures ETF (Ticker: UVXY) options.
The Option Pit VIX Light Is Red … and I expect a 16 VIX by Friday.
Mark close part of the trade 139 in VIX Edge today with the VIX Jan19 19 puts for a 66% gain.
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,