Why the Market Can’t Sell Off
VIX Traffic Light
The VIX futures curve is still in a nice contango – but the shape of the curve isn’t what’s catching my eye.
Instead, I’m focused on the price of VIX futures contracts. And they’re sky-high.
The August options expire on Wednesday. That’s in two days, meaning time value is pretty low. But these options continue to trade at a massive premium.
And that’s why the market won’t sustain a sell-off.
See, these options are so expensive because traders are buying them. And they’re buying them as hedges.
With a hedge, you don’t have to worry about a small sell-off. And this hedge feedback loop is exactly what’s holding the market up right now.
Launch Party Replay Now Available
Last week, we hosted the biggest live trading event I’ve ever been a part of – the Primetime Trading Summit.
And it was some of the most fun I’ve ever had on a Thursday night.
We released more trades than ever before…
Gave away a couple of free trading service subscriptions…
And had a ton of laughs along the way.
I’m sorry if you missed it – but you can catch a replay of the launch party (and it truly was a party) right here.
But nothing compares to the feeling of a live event, right? And lucky for you the Primetime Trading Summit was really a true glimpse into something we do every single day the market is open.
Mark’s Watchlist
- Palantir Technologies Inc. (NYSE:PLTR)
- Cisco Systems Inc. (Nasdaq:CSCO)
- CVS Health Corp. (NYSE:CVS)
- Walgreens Boots Alliance Inc. (Nasdaq:WBA)
I’m jumping in some of these names – but one of them is a “do-not-touch.” And it’s incredibly important that you know which is which.
Dive into the details of my Watchlist now…
- Palantir Technologies Inc. (NYSE:PLTR)
PLTR has broken out of a zone, and I think it could break over $25 soon. This stock is known to move and break out pretty fast. And right now, options IV is at the lowest it’s ever been. I’m looking at the September $25 calls. They’re only $1.25 for a really inexpensive bet on PLTR breaking higher.
- Cisco Systems Inc. (Nasdaq:CSCO)
CSCO is on my Watchlist as a “do-not-touch” stock. I’m not playing this stock – but I am watching it. The company reports earnings on Wednesday, and it’s an infamous heart breaker on earnings.
CSCO is consistently good at not showing up – so steer clear, and be aware.
- CVS Health Corp. (NYSE:CVS)
As talk of a booster shot gains more and more steam, I’m looking past the companies making the vaccines and instead focusing on the companies distributing the vaccines.
And that’s going to be drug stores like CVS and Walgreens.
CVS has been on a run all year, up 20% year-to-date after a nice post-earnings run. Walgreens… not so much. But that just means WBA has even more room to run.
- Walgreens Boots Alliance Inc. (Nasdaq:WBA)
I’m looking at the WBA September $50 calls for only $0.85. Just look at how well CVS has done – WBA could run higher too, and this is a great, inexpensive play to profit when that happens.
Trade the Close with The Warlock & Me
This week’s Profit Takeover live event is going to get crazy…
Because it’s not just going to be me and you, chatting about volatility. No, I’m bringing in someone else.
He’s a stand-up comedian…
A fast-moving day trader…
And a VWAP expert.
You guessed it – I’m going live with Kenny Glick on Thursday, August 19 for an exclusive trade-the-close session at 3:30 PM ET.
Together, Kenny and I will find the day’s top-moving stocks and turn them into fast-cash profits in the 30 minutes before the market closes.
Believe it or not, stocks tend to move the most during this time. And the only way to capture those gains before the market closes is to do it live.
Click here to add this live event to your calendar – remember, it’s on Thursday at 3:30 PM ET, and it’s all happening right here.
Today’s Impact Money Trade
There’s big money flowing into everyone’s favorite blue-chip – Apple Inc. (Nasdaq:AAPL).
Click to Enlarge
This is a big-money call spread buyer, buying the September $150 calls while simultaneously selling the $160 calls – betting on a move up in AAPL over the next month (just not much higher than $160).
AAPL has had a stellar 2021 so far, despite a small post-earnings sell-off. And this big buyer thinks that it’ll continue moving on up through the end of the summer.
Now, I don’t think they’re wrong. I see AAPL heading to $150 per share or higher. But today, the stock is going down with the rest of the Nasdaq, so I’d hold off on piggybacking this trade for now.
Before you head out and start trading, be sure to click here to add my live trading event with Kenny Glick to your calendar.
I don’t want you to miss it! Remember – Thursday, August 19 at 3:30 PM ET. Can’t wait!
Mark Sebastian
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August 16 2021
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