Yo Pit Crazies,
Yo Pit Crazies,
Fed Chairman Jerome Powell is going to talk tough about rates this week during his confirmation but the market had a different thought about that.
An about-face, if you will.
Turnabout is fair play, but options are there to be had.
Check out those options below …
Monday’s SPX Move Was More Than 2%
The S&P 500 made a huge move Monday.
I have to confirm with Licia “Queen of the Candlestick” Leslie on this, but I think the candle today was a hammer.
Seems bullish.
Just when it looked like the bottom was falling out of the SPX, it staged a huge rally for no discernable reason. (However not the higher Jan vol that Vol Man is jumping onto.)
Five-day SPX chart with Jan., Feb. and March on the bottom chart.
SPX IV is off its highs but still a bit higher into the close than the prior days. IV is not finding new lows since the rate scare started.
This means that the big moves are not quite over.
Long short-term strangles in the SPX are the way to go and I can make them for super-low decay so wait for the Trading Legion idea tomorrow,
The funny thing is that the surprise move in SPX could be on the upside …
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.
Jason is running with the long oil trade. Lots of folks in the Pro Chat are long KinderMorgan Inc (Ticker: KMI)
I posted a trade idea from the VXX Made Easy series in the Pro Chat room today that closed up $330 per 10 lot.
To Your Trading Success,
AG
