[kc_row use_container=”yes” _id=”119472″][kc_column width=”12/12″ video_mute=”no” _id=”811877″][kc_column_text _id=”412505″]

Yo, Pit Crazies,

You want the Mark bundle. You got the Mark bundle and have a chance to catch his mega product, Nitro Trader.  I even help every once in a while.

Vol Man is looking for some guidance.  VIX is in the teens again and he knows not what to do!

30-day SPX with IVs on the bottom of the chart

Ha! Of course, he knows what to do and of course, he will tell you.

Note that Jan Vol in SPX is back at the bottom

There is some seasonality to implied volatility so expect some of the shorter-term IVs around the holidays to be depressed because liquidity providers (LPs) don’t like paying for days they ain’t trading.  There is a bit of vol going into the CPI and next FOMC meeting but that is pretty much done as far as a vol event.  Rates are going up by .50% so that is enough for now.

As Billy Valentine says, “Parents want to buy the GI Joe with the Kung Fu grip for Christmas” and that is what it appears.  At least for 2022 things appear benign to the end of the year.

Yet it is 2022 and anyone who would think nothing can happen is nuts.  With VIX at the bottom, I want a max leverage trade here.  Low VIX begets low VIX so I expect to see lower numbers as the realized vol stays low into the holidays.  But SPX can tank on just about any news as we saw last week.  The reality is, most of the sexy upside is done.  Stocks can go up but we are not going to rally 5% next week and if we do the Russians and Ukrainians have a ceasefire.  

It is the Christmas Season so one can be hopeful.  Short VIX and short SPX are nice here but I am going heavy with the VIX puts.  New lows and in VIX are new lows after all.

The Rundown

 

   Big Money Flow

 

   Mark closed some PetroBras SA (Ticker: PBR) Dec16 12 calls closed for a 6%

gain

 

  Big Money Shopper

 

   Fidelity National Investment Services Inc (Ticker: FIS)  Dec16 70/75 call vertical closed for a    

   48% gain

 

  Power Income Trader

 

  Bill made the ⅔ of a hat trick with IShares Treasury Bond 20+ year ETF (Ticker: TLT,), 

  Market Vectors Gold Miner (Ticker: GDX) 11/18,11/25,12/2,12/16 95/90/85

put fly, 29 calls, 

  29.5 calls closed for a 36% gain

 

 Nitro Trader

 

  Mark’s Twitter takeover play paid off with a TWTR Jan20 52.5/55/57.5 call butterfly

closed for a 47% gain

To Your Trading Success,

AG

[/kc_column_text][/kc_column][/kc_row]