UVXY: How to Trade This ETF for a Week-Long Profit

A 60-Cent UVXY Trade to Play Our Yellow Light

We’ve got another yellow VIX light today – but we’re teetering on red.

See, if my VIX light was determined solely by the futures curve, we’d be red – the curve is in a contango…

But VVIX – another indicator I use to determine the color of my VIX light – is elevated.

This means we’re going to see a lot of days over the next few weeks where we are up or down 1% until the market shakes out.

But in the meantime, I’ve got a trade on the ever-bearish UVXY ETF.

I gave this 60-cent trade recommendation during today’s Profit Takeover show.

Here’s a trade screenshot taken directly from the announcements of today’s show:

This trade is an inexpensive way to go bearish on our yellow-teetering-red VIX light today.

Big Money Is Smooth Sailing into Cruise Lines

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These big-money traders don’t care about Omicron – not when you’re looking at the amount of bullish cash they’re putting in the cruise lines, that is…

We’ve got not one, but TWO big money bullish call spreads on Carnival Corp. (NYSE:CCL) and Norwegian Cruise Line Holdings Ltd (NYSE:NCLH).

These in-the-money (ITM) call spreads are betting on a move higher in the cruise lines.

And I piggybacked one of these trades during my Profit Takeover show today.

This is a screenshot directly from today’s Profit Takeover show. If you missed it, make sure to tune in next time…

Stay tuned for next week’s schedule!

Post-Earnings Airline Plays: UAL & AAL

The airlines reported earnings last night after the bell. AAL and UAL both beat estimates, but the stocks aren’t doing a whole lot today.

But we aren’t just looking at the stock’s movement. We’re looking deeper – at the stock’s implied volatility (IV).

And IV is coming off. It rose into the reports… and now, it’s getting ready to drop:

AAL IV 2022

That means options are getting cheap – and it’s a good time to look at some long plays, especially when you consider the big money flow I just told you about.

With travel stocks like CCL and NCLH getting a bid, the travel industry has got room to run.

And a post-earnings play on AAL and UAL may just be the double-whammy you need to take advantage.

Click here to learn more about my post-earnings trading strategy.

3. Financial Select Sector SPDR Fund (NYSEARCA:XLF)

All the banks are officially done reporting earnings. Now, we’re going to see where we can find value as IV tanks – and we’re using my post-earnings strategy to do that for the rest of the week in the Profit Revolution trading room.

Want a hint? We will be looking long.

4. Pfizer Inc. (NYSE:PFE)

PFE continues to drift lower. This thing is already down 5.5% in 2022:

PFE 2022

We’re seeing put buyers here already, and there could be a play here to get long puts.

Until next time,

Mark Sebastian
Founder, Profit Takeover

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Comments

2 responses to “UVXY: How to Trade This ETF for a Week-Long Profit”

1. Your Vix play is to go buy puts on the Vix when you think things will be more volatile I’m not understanding??

   Reply

2. From ZH

   Comment: “Man, I love VIX guy. Dude is on point.”
   Reply: “glad I ignored market ear and held on to uvxy calls in the morning”
   Reply: “I loaded up on uvxy the minute I read the “VIX guy called” post.”

   Reply