Dear Profit Takeover reader,
Here are the top four names I’m trading this week:
- VIX – Chicago Board Options Exchange’s CBOE Volatility Index
I am going to be going short VIX.
VIX is trading at 23.43 as I write this but I think it’s heading lower.
Typically VIX and the market move in opposing directions, but this situation is unique because since the volatility spread is so wide, it will be hard to make money on calls.
- iShares Core S&P 500 Index ETF (CAD-Hedged) (TSE:XSP)
As a pair to VIX, I’ll also be shorting XSP, a “mini” version of the SPX.
XSP is currently trading at 44.49 as I write this.
And like Garrett said this morning during the morning show, I think there is massive potential downside here.
I shared an “unofficial” way to pair trade the VIX and XSP during the live show…
Here’s the pair trade: Open the XSP August 31, 2022 $410-$398 Put spread buying for $2.30 or less. And Open the VIX September 21, 2022 $23 puts for $1.15 as a pair with XSP. Take profits at 100%, don’t hold these to expiration.
- Nikola Corp (NASDAQ:NKLA)
I saw a big money put buyer in NKLA who was right…
I might consider piggybacking this smart big money trade because I see the potential for more downside here.
NKLA is currently trading at $5.59 and smart money is betting that it’s heading lower.
- Apple Inc (NASDAQ:AAPL)
AAPL is the market, so if AAPL is dropping, the market will drop – that’s how big this stock is.
AAPL is currently trading at $168.54 since crossing above its 200-day moving average.
But I think it’s heading lower this week, and it’ll touch around $160 again in the next few days.
I’d look for a cheap put spread or put butterfly to go short here.
I will be taking a look at these names and more today during the live Profit Revolution trading session.
Hope to see you there.
Until next time,
August 22 2022