Full Speed Ahead – VIX Expiration

Last week, I started to get concerned that the VIX Traffic Light would turn yellow – something that tends to lead to violent moves in volatility.

But by the end of the week, things returned to normal. And today, the VIX curve is back in a steep contango:

Friday is monthly options expiration. But VIX futures don’t expire the same day as regular options. This month, they expire the Wednesday before – and that’s in two days.

Red Traffic LightBecause VIX futures expire Wednesday, all VIX plays need to be wrapped up by tomorrow afternoon. As a result, futures are being dumped – and we saw a nice early-morning rally in the S&P.

Volatility is red today – which is green for the broader market, like the S&P and the Nasdaq.

Pot Stocks Are Going Higher

  1. Goodyear Tire & Rubber Co. (Nasdaq:GT)

GT has seen incredible bullish flow the last few weeks – and it’s made a couple appearances as our Profit Takeover Impact Money trade.

All of that big money flow has sent the stock higher. Over the past month, shares of GT are up more than 23%:

GT Oct-Nov 2021

Shares opened around $23.5 this morning, and I like this thing to make a run at $26-$27 before the end of the year.

GT is not one to be ignored. And you can play it with the December 17, 2021 $24 calls for only about $1.15.

  1. Plug Power Inc. (Nasdaq:PLUG)

PLUG has had a big month, up more than 35% since mid-October.

PLUG Oct-Nov 2021

But I think the rally is over – and this thing is overbought. I’m bearish on this name, and I’d be looking to buy puts right about now.

  1. Tilray Inc. (Nasdaq:TLRY)

Pot stocks are looking bullish as the media discusses a bill that could legalize marijuana in the U.S. And names like TLRY, Aurora Cannabis, and Sundial are popping on the news.

TLRY, in fact, jumped more than 10% higher in the past five trading days…

TLRY Nov 2021

And I don’t think it’s done yet. This name is going even higher. (Pun intended.)

Food Prices Rising? So Are Ag Names

Food prices around the world are rising rapidly.

And I’m talking all about how to make money off of rising prices during my daily Profit Revolution trading sessions.

Inflation is high right now. And I’m here to show you how to trade it.

Learn how you can join my daily live trading sessions right here.

Now, at over $8 a bushel, wheat prices are at their highest price since 2012. And if it shoots to $10, then the whole side of the agriculture business is going to explode higher…

Like fertilizer company Mosaic Co. (NYSE:MOS), which just saw an aggressively bullish call spread:

This big-money trader bought 50,000 of the $50 calls and sold 50,000 of the $60 calls in a massive out-of-the-money (OTM) bet that MOS is going way higher.

Analysts see $45 per share as the upside on this stock. But clearly, this trader thinks they are way undershooting their target.

What do I think? And is this a trade you should piggyback?

You don’t have to shoot for $50-$60 like this March customer. And you don’t have to wait until March, for that matter.

The January 21, 2022 $39 calls are only about $2 for an inexpensive play on MOS moving higher.

Until tomorrow,

Mark Sebastian
Founder, Profit Takeover


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