Let's Talk IBM

Daily Pit Stop [fstp, logo, header] April 2, 2024 [ag views, logo, header] Cheap Options on IBM Yo Pit Crazies, When I’m trading, I get the MOST excited about cheap options that have the HIGHEST chance to explode in value. The key is knowing where to look. The feature of cheap options that makes them move is known as GAMMA (it’s one of the option Greeks). Just think of Gamma as the accelerator button. [ded] On a scale of 1 to 10, 1 being low/no gamma and 10 being “TO THE MOON” gamma, I can rate expected option performance. I’m going to be using my Gamma Rating System repeatedly for Option Pit Exclusive readers, so pay attention to this. It can help you find and follow the BEST cheap options opportunities with me, which is a perk of this newsletter ONLY. Options with relatively cheap implied volatility have “TO THE MOON” gamma. In the last few weeks in Capitol Gains and The Ticker Highlight Show, Frank, Licia and I have been talking about International Business Machines Inc (Ticker: IBM). This is a stealthy AI stock that I grabbed in early 2023 and kept holding on - even til now. Tips like that are exactly what you can start to expect as an Option Pit Exclusive reader (if you had been one back in early 2023). Here’s a chart of the implied volatility of IBM. The 60 day IV is in yellow, and the 90 day IV is in red. You can see both spiking up SIGNIFICANTLY at the end of this chart. [ded]( At first glance, most people would think the implied volatility of IBM is WAY too expensive… and they’re not wrong. But I’ve found some cheap options headed into earnings, because as a pro trader I know where to look. [That’s why I’m giving IBM a Gamma Scale Rating of (click to read more)…]( - AG  [logo, pit profits] - 0DTE - SPX 5205/5215/5225 call fly made $96 51% - 0DTE - XSP 520 calls made $74 137% Want to find YOUR winning fit? Give our Customer Care Team a call at [1-888-872-3301](tel:/1-888-872-3301) Monday-Friday from 9 a.m. - 5 p.m. EST. Or email them anytime at [support@optionpit.com](mailto:/support@optionpit.com)  [logo, fvix, header,] S&P 500 volatility hold Hey traders, On Monday the S&P 500 dropped 10.58 points.  Well off the lows…although even the lows were not THAT LOW. Yet, as we have seen over and over….just the slightest bit of selling and the VIX picks up. Coming off a long weekend, we would have expected the VIX to rally…but the VIX futures? Typically not. This is especially true with the S&P 500 just off all time highs. So what is going on? And what play is going to work here… [I have your answer…]( - Mark  [frep] Ticker of the Week! Hey Traders, NVDA is now the 3rd largest company in the world. AI can drive a stock into amazing highs as the market as it currently stands runs higher. But not all AI stocks are created equal…some are like NVDA and SMCI and go to the moon. Others are like PLTR and sit. Our stock this week is a name you know and we have touched on in the past. Is this name a buy or a sell? [Let's break it down….]( - Mark  Don't miss when our traders go live! Get an alert everytime we open the live rooms to all of our readers for free by selecting the calendar you use below. Add Option Pit Live Events to Your Calendar [Apple]( [Google]( [Outlook]( [Outlook.com]( [Office 365]( [Yahoo](   [glossary, logo] There are plenty of terms in the trading world that need explaining. The Option Pit Glossary is here to help. Today's phrase is:  Moving average - This is a moving indicator that smooths out prices over a period of time. A 50-day moving average would cover the average underlying price over the last 50 trading days. Moving averages can be simple (SMA) or exponential (EMA). [ftsp] All the Right Options. The Option Pit Team brings more than 150 years of experience to you every day. From the trading pits of Chicago to the world's largest banks to the halls of power in DC -- they've done it all. Now they’re collectively focused on one thing: making YOU a better, more profitable trader. Click the button below to schedule a call with our concierge Customer Care Team to find your best fit today. 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Specific trading ideas or strategies discussed in the presentations or materials are entirely illustrative and do not constitute the solicitation of a transaction (or transactions) or a recommendation to execute a particular transaction or implement a particular trading strategy. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Want to change how you receive these emails? 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