Advanced Apple Trades Coming Your Way

  1. Apple Inc. (Nasdaq:AAPL)

AAPL is getting destroyed.

And we called it, didn’t we? On Tuesday, just two days ago, the QQQ was on my Watchlist. And this is what I said…

If there’s further downside potential in this market, then it’s in the Qs.”

And today, the S&P, Dow, and Russell are all in the green. But the Nasdaq is taking a major hit as AAPL gets crushed.

Every day this week during my Profit Revolution live trading sessions, I’ve gone through a variety of AAPL trades – call spreads, put spreads, butterflies, you name it. You can check one out in the video below:

But those official recommendations are reserved for my Lifetime members.

Every Thursday, I host a Lifetime Member-only trading session. That’s when I recommend these higher-level trades.

And you could be right there with me.

Click here to learn how you can join in time for my next trading session!

  1. Twitter Inc. (NYSE:TWTR)

I was looking for stocks to short yesterday. See, when you’re trading options, you need to bulletproof your portfolio. And you do that not just by buying cheap calls – but buying cheap puts as well.

And TWTR would’ve been a great candidate.

After Jack Dorsey stepped down as CEO at the beginning of the week, TWTR started on a downfall that has yet to end. Over the past five days, this stock has lost almost 9%.

TWTR Nov 10-Dec 2

  1. Cardinal Health Inc. (NYSE:CAH)

I spotted a big-money straight call buy on healthcare company CAH yesterday:

A customer bought the March $52.50 calls 10,000 times. With no stock against it, this is a straight bullish trade. And if you look at a chart of CAH, you can tell that this buyer it trying to find some sort of bottom:

CAH Sep 14-Dec 2

The VIX Curve Is Telling Us the Future of this Sell-Off

Green Traffic LightSomething weird is going on in the volatility index.

My light is green, yes. But remember, I’ve got four indicators that help me determine the VIX light’s color…

1. S&P Correlation
2. VIX Volatility
3. CBOE VVIX Index

And lastly, one of the most important – the VIX futures curve.

Typically, when the VIX is shooting higher, the futures curve goes into backwardation. This means that futures with longer expirations are cheaper than those with shorter expirations.

But the curve isn’t in backwardation – it’s in contango.

I can’t recall a single time that we’ve seen the VIX go from 17 to 30 over such a short period and the VIX futures haven’t gone into backwardation.

What’s going on here?

Based on the way the VIX futures have structured themselves, I think this sell-off may be short.

It could be big, sure – we’ve already seen the market drop close to 1,000 points in a single day. But it’s not going to last far into the future.

So hold on… but don’t give up. We could see the market recover sooner than you might think.

One Man’s Trash Is Another Man’s Treasure

It’s not the sexiest company out there, but today, I want to talk about Waste Management Inc. (NYSE:WM).

What the company does may not be sexy – but the profit potential is. Especially if you’re looking at WM through this big-money buyer’s eyes.

Click To Enlarge

Someone bought 6,300 of the January 21, 2022 $65 calls for $4.30. In total, they spent around $2.7 million betting that WM will make a run above $165.

This is an interesting, overtly bullish trade. And I’ve got to say, I agree. This thing is off its highs, but it’s bouncing near its 50-day:

But $4.30 is pretty expensive for a straight call.

I do want to buy the January $165 calls. But against them, I’d look to sell the $175 calls for $1.20.

In total, you’re only paying $2.80 for the January $165-$175 call spread. That’s a steep discount compared to this buyer’s trade.

Remember – WM is a utility company. Even in uncertain times, those are the companies that continue to operate. So while the market sells off in fear of Omicron, WM is one name we can depend on.

I’ll be live again tomorrow morning at 9:30 AM, immediately after opening bell. Make sure you tune into my live Profit Takeover show then!

Click here for the full schedule.

Until tomorrow,

Mark Sebastian
Founder, Profit Takeover


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