November Is Out – December Is In

Today is VIX expiration, meaning that the November futures have rolled off and December is now the front month.

VIX futures trade in a contango. That means that futures contracts with longer expirations are more expensive than futures contracts with shorter expirations, creating an upward curve like this:

But when a new front month comes into play, it starts out really expensive – making some people think that the VIX is up…

When in reality, it’s not.

Red Traffic LightFor the past couple months, we’ve seen a ton of selling on the week of expiration. But that pattern changed today.

I think that the VIX could actually settle below 16 today.

With my VIX light red and volatility backing off from where it was just last week, we could see a strong market the rest of the week.

The Real Winners of the Infrastructure Bill

  1. Freeport-McMoRan Inc. (NYSE:FCX)

Biden signed the infrastructure bill this week – a bill that includes a big push for more electric vehicle charging stations.

As a result, we’ve already seen automakers like Plug Power Inc. (Nasdaq:PLUG), Lucid Group Inc. (Nasdaq:LCID), and Rivian Automotive Inc. (Nasdaq:RIVN) take off.

But dive in a little deeper, and think about this – what is needed to create those charging stations, those vehicles?

Well, copper. Plastic. Even oil – there’s a lot of crude needed for wind turbine, and I can see oil going to $100.

And that’s where you could see some serious upside. I’m talking about mining, minerals, materials, oil – that’s where we’ve got some huge upside potential…

And that’s putting stocks like FCX, Cleveland-Cliffs Inc. (NYSE:CLF), and US Steel (NYSE:X) on my radar.

  1. (CRO)

Did you know that when companies buy the rights to stadiums, their stocks tend to underperform?

That’s what Garrett Baldwin told me during this morning’s episode of Money Morning LIVE. And guess what?

The Lakers’ Staples Center has officially been renamed the Arena.

Crypto is too frothy… be weary! If this isn’t a sign of a top, I don’t know what is.

  1. Amcor PLC (NYSE:AMCR)

This packaging company looks prime for a breakout.

It’s not the most liquid stock, but the options do trade. And the January 21, 2022 $13 calls are only about 15 cents. When this thing pops to $13, anyone who bought those low-risk calls will be a happy camper.

Uber’s Big Close-and-Roll

My favorite kind of trade is a close and roll – just like this one on a favorite company of the Profit Takeover, Uber Technologies Inc. (NYSE:UBER):

Click To Enlarge

This customer sold the November $45 calls, took their profits, and used them to buy the $47.50-$57.50 call spread in December, betting that UBER is going to break $50.

Now, I’ve got to agree with this one. UBER’s going higher…

And we’re already profiting.

My Profit Revolution traders, in fact, just had the chance to take a 110% profit on a 99-cent UBER option.

Want the chance to get in on our next asymmetric winner? Click here to learn more about my low-risk strategy.

Now, I’ve got another close-and-roll – this time on Luminar Technologies Inc. (Nasdaq:LAZR).

Click To Enlarge

This customer sold 8,000 of the November $20 calls, collected 85 cents, and then bought the December 3, 2021 $21-$24 call spread.

Now, LAZR has been moving. And this big-money buyer thinks it’s going to keep moving…

All the way to $24, which would be a massive 20% move higher.

Like I said, LAZR has been strong. I wouldn’t be surprised to see a run at $24…

The December 17, 2021 $22.50 calls are about $1.25. And if LAZR hits $24, these will do great – and give you a bit more time than the December 3 spread this big-money trader put on.

When it rallies, implied volatility (IV) will go up, working in favor of these options.

Now, tomorrow morning, immediately after opening bell, I’m going live to reveal and EXPOSE on the year’s best option trades…

From discovery to profits.

Click Here to Add This Event to Your Calendar…

And I’ll see you then,

Mark Sebastian
Founder, Profit Takeover


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