This afternoon, I went live to tell you everything you need to know about quadruple-witching day.
We covered why this day is so important…
The effect it has on the market…
And talked about how to trade this rare event.
If you tuned in, then you may have noticed some technical difficulties interrupting our stream. But that’s okay – because I have a full replay ready for you now.
As you saw above, quadruple-witching is a momentum-creating event. It’s not always bullish, and it’s not always bearish.
Right now, the S&P is relatively flat. But if we see the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) rally far into the green as we approach the closing bell, then I’d look to ride that wave with SPY calls.
I’m going live every week exclusively for Profit Takeover members to talk about that week’s biggest money-making event. So if you experienced this week’s technical issues along with me, don’t worry.
I’ll always let you know when to catch me live – but for now, be sure to bookmark this page to ensure you won’t miss a moment of our live-action trading.
Now, tomorrow’s quadruple-witching day isn’t the only way to make money in today’s market. Check out the stocks hitting my Watchlist today…
- Ford Motor Co. (NYSE:F)
My favorite automaker is back on the Watchlist today after a big-money straddle trade caught my eye earlier this week.
A customer bought 12,000 contracts of the F July 16 $15 call and 12,000 contracts of the F July 16 $15 put simultaneously, creating a straddle trade:
Now, a straddle isn’t always a straight bullish trade. But in this case, I think that the buyer is looking for F shares and implied volatility to move up, and is using the put to hedge that bet.
I’m with this buyer – I’m bullish on F too. But straddles are a high-level trade. So, how would a beginner retail trader piggyback it?
Well, I’m looking at the August 20 $16 calls for $0.75 as a dirt-cheap way to cash in on F this summer.
- Energy Select Sector SPDR Fund (NYSEARCA:XLE)
I’ve been bullish on oil and energy stocks for the past several weeks as oil prices rise, quickly approaching $75 a barrel. I’ve shared some of my favorite oil stocks – among them Energy Transfer LP Unit (NYSE:ET), Transocean LTD (NYSE:RIG), and Marathon Oil Corp. (NYSE:MRO).
But with oil prices rising as quickly and reliably as they are, why not trade all the oil stocks at once?
The XLE is a great way to do just that, with exposure to stocks reliant upon both Brent and WTI crude prices. ExxonMobil Corp. (NYSE:XOM) and ConocoPhillips (NYSE:COP) make up the bulk of this ETF, but it also has smaller holdings like Halliburton Company (NYSE:HAL) and MRO.
As expected, XLE has been steadily rising higher, up more than 44% year-to-date with even more room to run as oil approaches higher prices.
VIX Traffic Light
For more info on the VIX, check out my newest report, The VIX: My Biggest Moneymaker in 20 Years of Trading.
After spiking to 18.31 this morning, the VIX is moving lower as I type…
Quickly heading toward the sub-15 level I’ve been forecasting for weeks now.
How can you play that? Well, I’d take a look at the July $17 puts for $1.10 to profit off of the VIX’s downward trend.
Tomorrow’s quadruple-witching day will send volume skyrocketing. The VIX, however, tends to remain muted, and my traffic light is still red as we head into the end of the week.
Speaking of the end of the week – tomorrow, it’s time for another round of your Ask Me Anything questions.
So, be sure to submit any and all questions you have – on the VIX, quadruple-witching day, our new AAL trade, and more – right here.
I can’t wait to see what you have to say!
June 17 2021