🚗I SPY a Vol Trigger

[] [The daily rundown of everything happening at Option Pit.]( [.]( MARK-et Open Hey OP Crew, Griff here with the Chart of the Day The S&P 500 Index ETF (Ticker: SPY) closed below a key option positioning level called the volatility trigger. [ It’s the option strike that signifies when the option dealer’s book is perfectly hedged. When above the vol trigger, the market is in a low volatility regime; when below, dealers are forced to sell stock in a declining market in order to maintain a balanced delta hedged book. Notice how bulls tried pushing SPY above the 412 level but failed. Now we’ll go into a call dominated OpEx on Friday, which will put more pressure on SPY as dealers who are short calls will have to sell their stock hedge through expiry. We should revisit the 405 area over the next week at a minimum. Let's Go! [ VIX Edge: Too Good To Be True? The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. Monday brought the market an inside day with the S&P 500 rallying 12.20 points and the VIX rallying off weekend effect to 17.12 – essentially down on the day considering the weekend. After a nice bid on Friday, VVIX fell somewhat sharply to 94.65. But, as we head into VIX expiration, I’m noticing an opportunity in the VIX futures that seems too good to be true. [Click here to learn how to trade it.]( - Mark AG's Views: Big Tech and Big Oil From the desk of Option Pit Director of Education Andrew Giovinazzi If 2022 was the year for Big Oil, 2023 is the year for Big Tech. Impressively Exxon Mobil Corp (Ticker: XOM) is still up 12% YOY, even after oil stocks hit that big rally area last year on the Russian oil shortage. Alphabet Inc (Ticker: GOOGL) is catching up with AI, even though growth slowed to a crawl this year. [ XOM and GOOGL on a 1 year compare chart Oil companies are still growing earnings, and Big Tech is not. I’ll be setting up for a long oil, short Big tech play once the debt ceiling crisis resolves. - 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: Vol: Abbreviation for volatility, realized volatility, implied volatility or otherwise a euphemism describing market movement [( 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