This is just a glimpse of one of the most useful charts in the option market – for retail traders, that is. The big traders on Wall Street ignore this chart. Why? Because they don’t care about low-dollar options. But you can exploit their ignorance and get into trades – up to five a week, in fact – for $100 or less. And this chart is the key. See the rest of this chart (and learn how to use it) right here.
Money Is Flowing Out of Energy – and into These “Soft Names”
Now, this could mean a few things…
The VIX could go all the way to 30, 35, even 40 – or it could go right back to 15. That’s what a yellow VIX light means.
With the market as disjointed as it has been, money flow is going to move in and out of differing sectors over the next few days.
That’s why I’ve been unloading certain positions – like my oil names.
Yesterday, my Profit Revolution members had the chance to take a 142% profit after just 11 days after I recommended an exit on a BP call. (See how we did it with this asymmetric trading strategy.)
Everyone was asking me… Mark, you always say you think oil is going to 100. Why are you closing your energy positions?
Well, because the VIX light is yellow. Money is moving.
I still think oil is going to $100 a barrel. But it won’t be in a straight line. Energy is getting toppy here – that’s why my Profit Revolution members had the chance to take 142% after just six days on a quarter share of BP yesterday.
We could see some dollar flow out of energy and back into the mega-tech names that got soft this week like Apple and Amazon. That would mean selling out of energy for now…
And looking into some big-tech long call positions.
Bank of America’s Post-Earnings Pattern
A move that would be perfect for a post-earnings trade – especially in the midst of BAC’s post-earnings IV crush:
BAC is following the post-earnings volatility pattern to a tee. And we’re going to look at trading it in the Profit Revolution trading room while the iron’s hot.
- Energy Select Sector SPDR Fund (NYSEARCA:XLE)
The XLE is sitting at a multi-year high… but it feels a little toppy here.
I am killing my longs – and I could get short for some near-term plays.
- Lucid Group Inc. (Nasdaq:LCID)
This EV maker has been in a lock-up period. But that ends this week – and we could see the stock hit the market and get forced lower.
I’m looking at the January 28, 2022 $40 puts to play that downside.
Trade the Kohl’s Buy Out Rumors
We’re looking at a LOT of action in retailer Kohl’s Corp. (NYSE:KSS) today…
KSS is up over 6% over the past five days. It’s had a good 2022 so far.
But there are buyout rumors surfacing that Amazon could take over this retail company…
And I think that’s where this bullish speculation is coming from.
Most of the action we see here is in February spreads. And I’d be looking to buy into some February call spreads to play this bullish buyout speculation on KSS…
Just like these, which I recommended LIVE during today’s 10:30 Profit Takeover show.
Tomorrow, you can watch me go over the day’s VIX light analysis…
Big money flow…
And watchlist stocks LIVE during my 10:30 AM Profit Takeover show – right here in the main room.
See you then,
Founder, Profit Takeover
January 19 2022