VIX Traffic Light: Red
Last week was exciting, I’ll say that.
We watched as the VIX light went from yellow, to green, and back to yellow as the market sold off and volatility spiked.
But I can already tell that this is going to be a slower week. Futures are back in a contango, and I expect volatility to drop, the VIX breaking below 16 by Friday.
And as a result, products like UVXY and VXX are going to eat it. I think UVXY is going to break 20 this week, dipping down to a new all-time low…
Which will be a great move for our current UVXY put!
As I type, this option is at 5% profit. UVXY’s downward move will push that even further into profit territory. Stay tuned for any necessary action to close this position.
And if you want to add even more exposure to your portfolio, this is a great opportunity to buy some puts and profit off of the week’s red VIX light.
You know that live trading is a HUGE part of what I do here.
I’ve been teaching people how to trade options for years now. And live trading has been the key to turning a trading newbie into a trading expert.
So, it was only fitting that I put on a LIVE presentation to showcase my brand-new, proprietary Asymmetric Trading System.
Tomorrow at 2:30PM ET I’m going live for my Profit Revolution members with Micah Lamar, the man behind the system.
Together, we’re going to show members how to access and take advantage of every bell and whistle this system has to offer – including backtested charts, my Volatility Intel Indicator, and a trackable Trade Journal.
But this live session is for MEMBERS ONLY. So, if you want to see my Asymmetric Trading System in action tomorrow…
I’m handing out trade ideas on all three of these names today. Can you think of a better way to start the week?
- Kroger Co. (NYSE:KR)
This supermarket stock landed on my Watchlist in mid-August when the Biden admin boosted food stamp payments.
Since then, KR has been on a bit of a downfall, accelerated by disappointing earnings on September 10:
I don’t think there’s much downside potential left in this name though. KR is a big distributor of COVID vaccines, and as booster shots begin to become available, KR will benefit.
I’d be interested in selling puts on this name, either keeping a nice premium or taking delivery on the January 21 $20 puts. For a simpler trade, you could buy the November 19 $40 calls to play future upside in KR.
- Stitch Fix Inc. (Nasdaq:SFIX)
Let me be frank – I don’t like this stock. I think they have a bad business model, and I think the technicals are weak.
SFIX is down over 21% year-to-date. And that’s including its 21% rebound over the past five days. I don’t think sentiment is high here, and if SFIX starts to fail I’d look at buying the October $42 puts for about $1.60.
- Cameco Corp. (NYSE:CCJ)
CCJ blew up on a uranium run last month – but since then, it’s given away a chunk of that move:
But the story isn’t over for this stock – especially not when you’re looking at the options activity.
We’re seeing heavy option trading volume in this name. Calls, call spreads, call stupids – all kinds of volume is backing this name right now. I think there’s another push coming soon, and I’m looking at the December 17 $21 calls for about $1.85 to play the second round of fireworks.
What a way to start the week – with trade ideas on UVXY, KR, SFIX, and CCJ.
But the week is about to get even more exciting…
I hope to see you there,
September 27 2021