What’s Up with PENN?

Yo Pit Crazies,


Congrats to Congress for spending a trillion dollars we don’t have on roads and bridges!


Let me know if a new road or bridge is coming to a town near you.


I am sure Frank Gregory will have the inside track on who wins.


      • Speaking of, we did have a couple of wins CAPITOL GAINS this week thanks to Frank’s insight.  


      • Meanwhile, Macro Griff is doing his big show this week.


With rates dropping, gold flying and the new spending boost, I predict a rich environment for our own Bond Man. 


It’s certainly No Time to Not Trade.


      • Being an occasional Twitter user, I saw some dirt on Dave Portnoy this week. That and not great earnings sent Penn Gaming Inc. (Ticker: PENN) into a tailspin.  


Let’s take a look …


Barstool Sports Versus DraftKings


Penn Gaming bought Barstool Sports and launched the internet gaming portal soon after.  This earnings had some growing pains, but internet gambliing is here to stay.


Dave Portnoy runs Barstool, and Business Insider wrote a hit piece on him that is behind the paywall. You want to read it, sign up!


Portnoy has survived bouts with Tom Brady, Roger Goodell and just about everyone else, and I am sure he will survive this one.


Even if he does not, PENN trades at ⅓ the market cap of DraftKings Inc., and PENN actually has casinos.


I sold the PENN Nov19 55 puts on Friday.


If I get put, I will ride The Wheel. A $10 billion market cap feels low to me for a franchise like this.


The Rundown


Capitol Gains w/ Frank Gregory
Option Pit DC and 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 closed the iShares MSCI Brazil Index diagonal put spread for a 50% gain on credit.
      • I also closedthe balance of my QuantumScape Inc. (Ticker: QS) position for 16% gain net and will look to jump back in there.


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  looking at Vodafone Inc. (Ticker: VOD), Fluor Corp. (Ticker: FLR), and RobinHood Inc. (Tick: HOOD) on Friday.


 Plus a thank-you shoutout between Roomies on Friday …

Big Money Flow

Each week, Option Pit CEO Mark Sebastian looks at size institutional option buying with a twist.  He mostly buys calls or puts to ride the large momentum trades.


      • No closes on Friday, but a great week in here led by a 125% close in Ford (Ticker: F).


Trading Legion:
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 am going to cover the Protected Wheel Trade in Trading Legion this week, where I have rattled off four wins in a row. 
      • I am riding Vale SA (Ticker: VALE) as a commodity play, so I might see some upside action here.


Volatility Edge & Volatility Trading Club:

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 VIX future decay to pay for upside Cboe Volatility Index VIX, iPath Series B S&P 500 VIX Short Term Futures ETN (VXX) and ProShares Ultra S&P Short Term VIX Futures ETN (UVXY) options.

The Option Pit VIX Light Is Red. t will be interesting to see how the market reacts to the spending bill


Mark took the low print for VIX Friday and printed bucks …


      • Vol Edge 4 UVXY Nov19 15 puts closed for a 43% gain
      • Vol Edge 10 VIX Nov17 17 puts closed for a 125% 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,


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