🚗The Bad News Banks

[] [The daily rundown of everything happening at Option Pit.]( [The daily rundown of everything happening at Option Pit.]( MARK-et Open Hey OP Crew, Griff here with the Chart of the Day. Charles Schwab (Ticker: SCHW) reported earnings of $.93 and beat by $.03, although it missed revenues by $10 million. The stock whipsawed from down 3% to up 3% … [ The bottom line: SCHW projected near-term revenue headwinds from higher cost of funding, which likely will cause Q2 total revenue to decline by mid-to-upper single digit percentage points Y/Y. This is a problem for most banks since funding costs are higher and lending standards are rising. It won’t get better anytime soon as the market is pricing in another .25% hike when the Fed meets again May 3. I would be a seller near $55 … Let’s Go! [ [ - POWER INCOME TRADER: SPY Apr21 416/417 call vertical spread closed for a 19% gain - TRADING DESK: VXX, SPY Apr14 42 puts, 405 puts closed for a 3% gain Want to find YOUR winning fit? Give our Customer Care Team a call at 1-888-8772-3301 Monday-Friday from 9 a.m.-5 p.m. EST. Or email them anytime at [support@optionpit.com](mailto:support@optionpit.com?subject=) Power Income: The Canary in the Coal Mine A mining tradition that dates back to 1911, which was just two years prior to the Fed being created, was the use of a canary brought down into a coal mine to detect toxic gasses and protect miners from death. The practice ended in 1986, but the idiom is still often used in financial markets to warn investors of toxic products that are dangerous to their wealth. [ I see the bank failures as warning signs of serious trouble in the mortgage market and in particular the commercial real estate (CRE) market … [Today, I’ll share why a collapse in lending by regional banks could trigger a much deeper recession than currently priced in the markets.](- Griff AG's Views: Paper Buying The Bottom In Nat Gas From the desk of Option Pit Director of Education Andrew Giovinazzi Why do we look at Big Money flow? Because Big Money flow is big right from time to time! Right now, Big Money is going into upside Cenovus Energy Inc (Ticker: CVE) in a big time way. CVE is large Nat Gas energy. Oct and Jun upside calls are getting bought in size today. My guess is the buyer is looking for a new jump in the cost of Nat Gas. [ CVE has been as high as $24 over the last 2 years, so this customer is looking for a much bigger move. Can Canadian Nat Gas get there? This customer thinks so. - AG OPTION PIT GLOSSARY [( There are plenty of terms in the trading world that need defining. The [Option Pit Glossary]( is here to help. Today's phrase is: Spike: An immediate price change in a security where the relative move is much higher than the normal volatility [( DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. Neither Option Pit LLC nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational and educational purposes intended is at the user’s own risk. DISCLAIMER: OPTION PIT LLC IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Option Pit LLC is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented materials. 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. This email was sent by support@optionpit.com to {EMAIL} Click here to unsubscribe | [Manage Preference]( Daily Newsletters ex. Vix Edge, Pit Report, Profit in Pumps, Power Moves, Power Income, etc. Option Pit | 190 S LaSalle Suite 3000 Chicago, IL 60603