VIX Light Just Changed – Expect Face-Ripping Moves This Week

VIX Traffic Light: Yellow

On Friday, we saw the VIX cash index briefly get above September futures. That changed the VIX curve – one of the four indicators that can change the color of our VIX traffic light.

So, we’re looking at a yellow light for both volatility and the markets today.

Now, this doesn’t mean we’re due for a sell-off. But expect wild moves in the VIX… in either direction.

See, we’ve got a couple of ways this could play out. When the light is yellow, we can see face-ripping recovery rallies or serious sell-offs.

Now, based on what we’ve seen happen the past five or so months, I think we’re looking at a near-term bottom. By the end of the week, the S&P could be at new highs and the VIX could be back at 15.

But for now, we’re being careful – and the VIX light remains yellow.

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Mark’s Watchlist

1. Merck & Co. Inc. (NYSE:MRK)

Pharmaceutical company MRK isn’t the wildest of stocks. It’s down 5% year-to-date and has only moved 23% higher in the past five years.

Today, the stock sits at about $73. But one big-money trader thinks it’s going to go to $80 by November:

Click To EnlargeThis trader set up a November call spread on MRK, buying 20,000 of the $75 calls and selling 20,000 of the $80 calls, paying $1.31 for the five-point vertical.

I’d definitely consider piggy-backing this trade – and I don’t need to set up a fancy spread to do it.

A ton of October options in MRK fit the Profit Revolution profile for an inexpensive option that could easily return 100, 200, 300% or more.

One that’s catching my eye is the $75 calls for about $1.00. But if you want to get even more dollar-or-less recommendations – on MRK and beyond – then click here to learn how. I drop up to five LIVE recommendations a week…

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2. Cameco Corp. (NYSE:CCJ)

Like MRK, CCJ has never been the most active stock. But it hit my radar on Friday after I saw 400,000 of the December contracts trade. I like this name going higher – it already popped on the open today, in fact.

For a cheap option play, I’d look at the September 24 $26 calls for $1 or less.

Now, this stock moved fast out of the gate. But if the option is over $1, don’t chase it.

Instead, click here to see how you can get LIVE recommendations from me. That way, you’ll always get the best price.

3. Intel Corp. (Nasdaq:INTC)

On Friday, I dropped a LIVE trade recommendation on INTC. This trade was only $1.00 at the time – but shortly after today’s open, it was already sitting above a 50% gain.

INTC is ripe for gains at this point – but not just 50%. Every trade I recommend to Profit Revolution members has the potential to make 1,000% in 30 days or less – and I drop a new trade live every day the market’s open.

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Why I Don’t Trust Apple

Apple Inc. (Nasdaq:AAPL) is one of my favorite stocks to trade. We’ve seen crazy volume the past few weeks.

The stock was hitting new highs every week, climbing all the way to $157-plus per share.

But on Friday, things changed.

AAPL lost almost $84 billion in market value after a court ruling in the case against Epic Games.

The ruling essentially allows app developers to send players of popular video game “Fortnite” to platforms other than the “App Store” to make payments…

Which lets them skip out on Apple’s 30% fees.

The stock closed down 3.3% on Friday in the steepest decline Apple’s seen in months.

Now, since then, the stock has regained some ground. It opened 1% higher this morning, and it’s due for a streaming event tomorrow that’s rumored to include the new iPhone 13.

But it’s got 4.5% to go before it returns to its 52-week high.

So be wary – because right now, I don’t trust this stock.

And that’s exactly why I’m looking to short it with a quick put trade.

I’m looking to short AAPL this week with the September $148 puts. If the stock closes around $145 by Friday, this put would turn a nice asymmetric profit.

And that’s all for today, folks – but not if you join Profit Revolution.

I’m going live at 2PM ET to bring members a brand-new trade recommendation – one that’s under $1 with the potential to pay out 1,000% in 30 days or less.

Learn how to join right here.

I hope to see you there…

Mark Sebastian

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