When Is a Big Trade A Big Trade?

Yo Pit Crazies,

Frank and I are going to show you the Next Big Thing live this evening during Capitol Gains: October Surprise. It’s new information — and exclusive trades — that will make your trading easier and more profitable. Don’t miss out.

Right now,  I am going to show you something different. The best thing about my job is my students and fellow traders.

Why? Because they bring the ideas.

One person can’t see everything — but together, that’s a different story.

Sometimes the ideas they bring are truly great. (You hear that, Trevor??)

Let’s tap into the idea flow …

Crazy Volume in PetroBras

Mark does the Big Money Flow, but that is based on traders using big blocks of options to achieve goals.

The flow here is retail jumping into the Petrobras SA (Ticker: PBR) Oct. 29 11-strike calls for $.17.

Massive call buying in PBR Oct29 11 calls.

Granted, PBR is just a state oil company in Brazil, but $.17 with 10 days to go and only $.46 out of the money looks like a pretty good deal.

Implied volatility went nuts so expect a bounce in PBR soon. My, oh my.

The Rundown

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 very active yesterday, with some reticence over how low VIX could go.

LRD with a home cooked, market neutral win on a crazy up day:

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 VIX, VXX and UVXY options.

The Option Pit VIX Light Is Red, as contango steepens and the markets become more orderly.

Mark bought a passel of VIX Oct. 20 16-strike puts Tuesday for $.10. We’ll see how they did.

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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