VIX Traffic Light
The VIX had its lowest post-pandemic settlement yesterday. Today, I think we’ll continue the downward trend, finishing the week below 15.
And next week, we could get as low as sub-14.
People aren’t buying those crash-protection puts anymore, and volatility is dying by the vine.
That means the VIX – and especially UVXY and VXX – are going to die.
Volatility is dropping, the VIX light is red, and it’s time to start shorting this thing.
I actually walked through a few strangle trade ideas on the VIX in my 10:30 show on Money Morning LIVE this morning.
If you missed it, then guess what – I’m live again hosting my own show on Money Morning LIVE Monday morning at 10:30.
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I’m ending the week looking at these three names.
- Snap Inc. (NYSE:SNAP)
SNAP absolutely crashed after missing revenue expectations in yesterday’s earnings report, opening down around 25% this morning.
When a stock gets completely smoked like this, and it isn’t at risk of going out of business, it’s a great chance to sell puts.
The January 2023 $50 puts are worth about $12 right now. Over the course of a year, selling those could hand you about a 25% return.
Or you could end up taking delivery – but as I said, SNAP isn’t going out of business, and I wouldn’t mind owning it.
- Apple Inc. (Nasdaq:AAPL)
My son, Valentino, made a surprise appearance on this morning’s Money Morning LIVE show…
He was sucking down some apple juice, and it made me curious to take a look at AAPL.
It’s up almost 4.5% over the past five trading days. And it’s set to report earnings next week, alongside a ton of big-tech companies.
Next week is arguably the biggest of earnings season. And I’m looking at a pre-report play on AAPL in my live Profit Revolution room today.
It’s too late for you to join today’s session if you aren’t a member. But make sure you check your inbox this weekend for a very special deal, coming your way soon…
- Peabody Energy Corp. (NYSE:BTU)
BTU has had a rough few days, going from a $19 stock on Monday to a $13 stock this morning.
This thing is bound to bottom soon – giving you an opportunity to catch the subsequent upside. The November $16 calls are only a buck right now. And with coal in huge demand, BTU will rush higher.
Today’s Impact Money Trade
A big-money buyer is finishing their week with a casual $3.3 million trade on Vodafone Group Plc (Nasdaq:VOD):
This customer bought 67,000 of the April 14, 2022 $17 calls on the telecom. And we actually saw a similar flow in both the September and October contracts.
Seriously… what’s going on here?
VOD hasn’t made a lasting bullish move for months. It hasn’t been at $17 all month.
I’m not so sure about this trade.
With how VOD has moved over the past few months, I’m not diving in head first quite like this multi-million-dollar buyer.
Instead, I’m going to wait for this thing to rally.
I need to see VOD make a significant move higher before I buy anything on the telecom.
Remember – I’m kicking off next week with my very own live Money Morning LIVE show on Monday morning at 10:30 AM ET.
Be there or be square. Click here to add the event to your calendar!
Have a great weekend, and I hope to see you on Monday,
Founder, Profit Takeover
October 22 2021