Today’s Impact Money Trade

Yesterday’s impact money trade on Ford didn’t disappoint. After seeing a sneaky bullish put spread on F, I recommended piggybacking with the January $16 calls:

Today, as I type, that option is up more than 68%!

Want to do it again? Well, check out this mega-bullish call spread on Uber Technologies Inc. (NYSE:UBER):

A customer bought 24,000 of the January $50 calls and sold 24,000 of the $60 calls against it for a net debit of $1.36.

This isn’t the only bullish flow we’ve seen on UBER. Institutional money has been continuously flowing into the ride-sharing name. There’s a lot of speculation on this thing going higher…

And I’m with them.

This is a great reopening trade, a great tech trade. And if labor shortages improve, well, that’ll be big for upside in UBER.

The November 19 $50 calls are only about 72 cents. With earnings coming up on the fifth, this gives you great exposure to further upside in UBER.

We’ve got good luck when it comes to UBER here at Profit Takeover. We made 271% last month on a trade!

And we’ve got another one open in the portfolio right now. I can’t wait to see earnings push this baby up.

VIX Traffic Light

The spread between the VIX futures and the cash index remains really wide.

Now, this isn’t necessarily out of the ordinary…

When the VIX is low, the futures are typically trading at a discount to the cash index. When the VIX is high, futures trade at a premium, as they are now:

It’s the size of that premium that tells us what the market’s expecting.

So… what does that gap mean for the future of volatility?

Red Traffic LightThe VIX has been up the past few days. And with November futures so high here, we can see that there’s further expectation that volatility will increase.

The Fed, natural gas, oil prices – these are all factors contributing to the growing “fear” in the market.

But honestly, a lot of that fear is already priced in. And that’s why my VIX light is still red, despite the spike we’ve seen this week.

I think we’ll get back to 15 by the end of the week.

Mark’s Watchlist

Third-quarter earnings season is plowing full-speed ahead. And today, I’ve got a few pre- and post-report plays to share.

  1. Clorox Co. (NYSE:CLX)

Normally, I don’t like trading earnings. But CLX looks interesting.

This thing has essentially gone straight down over the last year. And every earnings report from the cleaning product company has accelerated that downtrend:

Click To Enlarge | CLX YTD, Last three earnings (Feb 4, Apr 30, Aug 3)

At this point, I’m just wondering – how low can this thing go?

I could see some selling pressure hitting CLX ahead of its next earnings report on November 1. And the November 5 $157.50-$150 put spread gives you a 7.5-point vertical for only a $2 debit.

  1. Ford Motor Co. (NYSE:F)

She’s back, baby! I’m ready to take another swing at F after it blew the doors off earnings.

My favorite auto company crushed expectations, hitting a new 52-week high of $17.58 shortly after opening bell.

I called this yesterday, didn’t I?

Honestly, I wouldn’t be surprised to see knockout earnings from [Ford].” – me, October 27, 2021.

And now, I’m making a new bet – this thing is going all the way to $20. You heard it here first!

Premium is fairly cheap in F options. And that’s exactly what I’m looking for when setting up an asymmetric trade.

Click To Enlarge | F IV, March-Oct 2021

The implied volatility, which directly correlates to option prices, is represented here by the green line. And it’s looking pretty low – which signals the opportunity for a cheap option trade.

The January 21 $18 calls, in fact, are only about $0.75.

You can get access to this exact charting software – software that allows you to see the implied volatility on any stock on the market.

I hired a tech expert to create this trading software specifically to my strategy. And you can check it out right here.

  1. Exxon Mobil Corp. (NYSE:XOM)

Before there was big tech, there was big energy – and XOM was king.

This oil and energy company has been on my radar ever since oil prices started to skyrocket. And they report after the bell tonight.

I’ve got a close eye on what XOM has to say…

And we could just kick off tomorrow with a quick-hit energy trade.

Stay tuned…

Mark Sebastian
Founder, Profit Takeover


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