Fade Apple’s $3-Trillion Move

Editor’s Note: Today’s live Profit Takeover show kicks off at 12:30 PM ET. Click here to tune in and watch me break down today’s asymmetric trading opportunities.

The Single Indicator Holding Volatility Up

Over the last few weeks, volatility has gotten absolutely smashed. We’ve seen the VIX go from 22.9 to about 16.5 in the past 15 days.

And as a result, my VIX light has gone from green…

To yellow…

To blaring RED.

Volatility is in free-fall… and there’s only one indicator that’s keeping the VIX above 15 right now – and that’s skew.

Skew is the cost of way out-of-the-money (OTM) puts relative to at-the-money (ATM) options. And that’s pretty high right now.

But once these OTM puts start to sell off, we could see the VIX drop to 13, 12, even 11 or less. And that’s a move that’s good for market bulls and bears.

How can a volatility dip be good for the bears?

We can’t have doomsday until the VIX is low.

In order for the broader market to actually sell-off, we need all of these market hedges to stop. Because if investors are hedged against a sell-off, then they aren’t necessarily scared of a sell-off…

Meaning volatility will stay low, and the market won’t actually sell-off.

Volatility has to fall before it can rise. At the same time, the VIX could stay sub-15 for weeks, months, even years.

Either way, we need to see volatility fall. And according to my VIX light, that’s exactly what it’s going to do.

Apple Becomes Richest Company in History

Apple Inc. (Nasdaq: AAPL) made history yesterday as the first publicly-traded company to be worth $3 trillion.

It’s no secret that AAPL is one of the most popular stocks in the market. Everyone wants their hands on it – and that includes me.

But I’m less interested in buying the $182 name… and more interested in trading it, profiting off of its ups and its downs.

And that’s exactly what I do in the Profit Revolution trading room.

At the end of the December, I recommended a trade on AAPL that turned in a 94% profit in only four days.

That’s not the only chance my rebels have had to make money on the $3 trillion stock, either.

Take Victoria G. “I made 210% on AAPL in one day with a $58 investment,” she told me.

And her fellow rebel, Carlos C – “Imade 200% in two days on Apple,” he said. “Profit Revolution has helped me live better financially.”

I tend to recommend AAPL trades once a week – either as an official trade recommendation or a bonus move. But it all happens in my Profit Revolution trading room…

So, if you want to trade this $3 trillion name with me, then click here to join!

Now, Apple got completely overbought yesterday, and it’s time to fade this name.

I’m looking at weekly options here. The January 7, 2022 $180 puts are a great candidate if you’re looking to fade yesterday’s AAPL pop.

My Top Inflation Trade Ahead of the Fed Minutes

On Wednesday, the Fed will publish minutes from the December FOMC meeting.

Remember what happened during that meeting? The Fed decided to cut back on stimulus that it implemented during COVID-19 – meaning they’re going to increase interest rates soon in an attempt to curb inflation.

The big money I’m tracking today, however, shows that inflation is still a risk ahead of Wednesday’s minutes:

Click To Enlarge

We’re looking at a big-money bullish call spread in the iShares Silver Trust (NYSEARCA: SLV).

And this bullishness in metals, a common safe-haven space when inflation is high, shows that institutional investors are still factoring inflation into their trades.

That’s why I’m long SLV calls…

And you can be too. Tune into my Profit Takeover show at 12:30PM ET RIGHT HERE to learn how I’m piggybacking this trade!

Money Is Moving Out of Mega-caps

The Dow is up big today – more than 330 points as I type. The Nasdaq, however, is weak. It’s down more than 1.2%.

This is a good sign. The market has been so top heavy, but finally, leadership isn’t only coming from the mega-caps. This shows that money is flowing into logical investments…

I’m going to show you exactly how to trade my top stocks during today’s Profit Takeover show at 12:30 PM ET. It’s all happening right here.

1. Ford Motor Co. (NYSE:F)

My favorite automaker is blowing higher today, after opening 3.5% up from yesterday’s close. I think this thing is on its way to $25 – meaning now’s the time to go bullish. And you can tune into today’s Profit Takeover show at 12:30 PM ET to get my best trade!

2. Coca-Cola Co. (NYSE:KO)

Like AAPL, KO blew higher yesterday, and is now over $60 a share. This is a clear showing that money isn’t leaving the market – it’s moving into companies that make money, like KO.

And if you want to move your money into KO, then be sure to tune into today’s Profit Takeover show at 12:30 PM ET to hear my top trades.

3. IBM Common Stock (NYSE:IBM)

In the pantheon of poorly managed companies, IBM is somewhere near the top. It’s had a nice run off its lows, but I think it’s done – and I’m perpetually bearish when it comes to this tech corporation.

That’s why, this month, when Liz Brazeal, editor of Trading Today, asked me my top monthly option trade for January, I went bearish on IBM.

The January 21, 2022 $132-$127 put spread – that’s buying the $132s while selling the $127s – is only about $1 to $1.50. And as IBM falls, this put debit spread could turn into a triple-bagger.

For a deeper dive into everything I just showed you, tune into today’s live Profit Takeover show at 12:30 PM ET – RIGHT HERE!

See you soon,

Mark Sebastian
Founder, Profit Takeover

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