This VIX Trade Could Quadruple in Two Weeks
Make 400% as the VIX Plummets
We haven’t seen a real market sell off since last fall.
And when you look at the VIX, you’ll realize why that is.
See, the VIX should be around 12 or 13 right now. Look at the S&P – it’s been hitting new all-time highs for the past several weeks. And when the S&P rises, the VIX should fall.
Instead, the VIX is sitting at 16. And that’s because of the volatility feedback loop I told you about last week.
People are buying puts, hedging their positions and sending the VIX higher even though they aren’t scared of a sell-off.
And together, it’s built a trampoline underneath the market.
Without a major catalyst, the market can’t sell off. And soon, the VIX is going to drop back down to where it should be.
It touched 15 a couple of times about a week and a half ago – and I think we’ll see the same by the end of this week.
Today, I’m going to give you a trade idea that could quadruple in the next two weeks as the VIX plummets.
The September $15 puts on the VIX are only a nickel.
That’s right – five cents. When they go to $0.10, I’d sell half the position. Then you’re sitting on a 100% win and can take a shot at the VIX plummeting to 13 or lower – a move that would turn your position into a 400% win.
Want to learn how you can get even more cheap option recommendations like this?
I’m talking options that are $1.00 or less, with the chance to produce an asymmetrical return in 30 days or less.
You can add this event to your calendar now right here.
More Cheap Option Recs – Released Wednesday at 12:30
Once a week here at Profit Takeover, I send you an official option trade recommendation with the potential to make an asymmetric return.
And on Wednesday, September 1 at 12:30 PM ET, I’ll show you how you can start getting even more.
I’m talking about option trades that are $1.00 or less…
Targeting 1,000% gains…
With the potential to pay out in 30 days or less.
To learn how you can get access to recommendations like this, be sure to tune into this week’s live trading session on Wednesday at 12:30 PM ET.
Add this event to your calendar to ensure you don’t miss a moment of the action!
Mark’s Watchlist
- Vinco Ventures Inc. (Nasdaq:BBIG)
BBIG is the new meme stock on the block, up 211% over the past five days. It’s a textbook short squeeze – stock volume, option volume, implied volatility, and share price are all increasing.
But folks, remember, like all meme stocks, this is a stock you trade, not a stock you invest in.
- Perficient Inc. (Nasdaq:PRFT)
PRFT is a stock that wasn’t on my radar until my colleague, Olivia Voz, host of Money Morning LIVE, did a volume profile on the stock last week.
Shares are up over 8% in the past five days, and like BBIG, this one’s got the making of a short squeeze. But be careful – because when this stock does turn around, it’s not going to happen slowly. This thing could flip on you quickly, like ripping off a bandaid.
As Voz herself says, “up the stairs… down the elevator.”
- Sundial Growers Inc. (Nasdaq:SNDL)
This pot stock has found its way onto my Watchlist after a series of short pops and squeezes. Right now, it’s only about $0.77, and it’s a name I’m interested in adding to my portfolio.
If you want to go the option route instead, I’d look at the October $1 call for about $0.07. This is a dirt-cheap trade, and it will quadruple if SNDL goes to $1.30.
- Ulta Beauty Inc. (Nasdaq:ULTA)
ULTA reported great Q2 earnings this month, and I’m not surprised – my wife has probably kept this cosmetic chain up herself! She can’t walk in there without walking out with a wallet that’s about $200 lighter.
Traders seemed to fade the earnings on this one – and then, they bought the earnings fade. From here, I see the stock going higher, and I’m looking at the October $390 calls for about $15.
Now, that’s a pretty expensive trade, but you could cut your risk a bit by selling the $420 calls against it, creating a call spread for about $10.
If you want to know how you can start receiving trade recommendations on cheaper options, then be sure to tune into Wednesday’s live trading session at 12:30 PM ET.
- Uber Technologies Inc. (NYSE:UBER)
UBER’s been on a bearish decline, down about 9% over the past month. But this thing’s about to reverse – and during last week’s live trading session, I gave you the details of a new trade. You can track that trade’s performance today right here in the Profit Takeover portfolio.
Today’s Impact Money Trade
Big money flow is relatively slow on this Monday, but I did see something interesting on a favorite stock of mine, Nokia Oyj (NYSE:NOK):
Click To Enlarge
We’re looking at a short time spread here – that’s a bearish call spread where both legs have the same strike price, but different expiration date.
This is a pretty far-out trade, with expirations in 2023. This big money buyer is looking for a big move above $10 before next year.
That’s all for today, folks. Remember to add Wednesday’s live Profit Takeover trading event to your calendar now!
See you soon,
Mark Sebastian
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August 30 2021
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