The Market’s Real Story

Red Traffic LightVolatility went up with the S&P at the end of last week.

Typically, that’s a bad sign. The VIX is supposed to move inversely to the S&P.

When the market goes down, the VIX goes up. When the market goes up, the VIX goes down.

Last week, they went up together…

So why is my VIX light red, and not yellow?

Well, I’m not overly concerned about this movement.

This market is actually pretty soft.

Money is flowing into the mega-caps – and that’s what’s keeping the market afloat right now. It’s exiting every other industry.

So the VIX’s upward movement last week made sense. And I wouldn’t be surprised to see it catch a bid today as well.

But all in all, I don’t think we’re going to see any major VIX moves, which is why my light is red.

Someone Check on Jack Ma

Something insane is happening in Alibaba Group Holding Ltd (NYSE:BABA):

BABA is a $140 stock. So why are 100,000 of the $20 puts and 50,000 of the $30 puts trading… for next month?

This is a massive sweep in way out-of-the-money (OTM) puts.

Is BABA going to be delisted? Is Jack Ma going to disappear? What could possibly cause a bet this big on a fall this steep?

Someone knows something.

There are BABA bulls out there. But this kind of paper should deter anyone from wanting to do anything with the stock from a long perspective.

BABA is definitely one to keep your eye on right now. And there could be a bearish opportunity at play…

But I want to watch first. Because this bet is just too big to ignore.

How High Can AAPL Go?

It’s a short trading week – but that doesn’t mean we’re short on trade ideas.

  1. Skyline Champion Corp. (NYSE:SKY)

This is a stock with relatively low IV, but it doesn’t trade that much. That means it can be difficult to trade, which is important to keep in mind. But if you were to go bullish on this home-building stock, the January $85 calls are in the $3 to $3.50 range.

Based on the stock chart, this thing could easily go to $85 or $90 a share.

  1. Apple Inc. (Nasdaq:AAPL)

How high can AAPL go? That’s what I’m wondering. This thing is up more than 11% in the past month, and it’s sitting at a 52-week high over $165.

AAPL Oct-Nov 2021

But I don’t think it’s done yet.

AAPL could get all the way to $175, especially as we enter the holiday season. And I’ve never been so bullish.

Want a shot at AAPL? I love giving trade ideas on the mega-cap during my Live Trading Sessions in the Profit Revolution room

And I’m live every day the market’s open.

Get in just in time for some bullish holiday trades on AAPL – click here to learn more.

  1. Ford Motor Co. (NYSE:F)

After a rough week, F is having a good day today. It opened around $19.40 and has been running higher since.

F Oct-Nov 2021

It’s time for F to make a move above $20…

And stay there.

Remember – it’s Thanksgiving week, meaning the market is closed on Thursday. And on Wednesday, things tend to die down pretty early.

But I’m still coming at you every day this week with the best ways to trade…

So keep an eye on your inbox!

Mark Sebastian
Founder, Profit Takeover


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