🚗Fed Rates Cause Flip-Flop

[] [The daily rundown of everything happening at Option Pit.]( [.]( MARK-et Open Hey OP Crew, Griff here with today’s Chart of the Day. There was a total flip flop in the market pricing for a Fed rate hike at the June 14 meeting today. Fed Governor (and likely next Vice Chair) Philip Jefferson said “skipping a rate hike at a coming meeting would allow the Committee to see more data before making decisions about the extent of additional policy firming.” Notice how the odds at the June meeting went from 67% chance for a hike to 64% chance for no hike: [ A no hike narrative would be the next event that fuels higher prices in the weeks ahead. The Fed and Banks need a rally in financial assets and will do anything to get it. Let’s Go! [ [ - OPTION SHOPPER: XSP May25 216 calls closed for a 65% gain - POWER INCOME TRADER: SPY 2/6/4 Jun02 419/412/405 put butterfly closed for a 219% 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=) VIX Edge: Big Moves From SPX The Option Pit VIX Traffic Light Is Yellow: Volatility is likely to move wildly. The S&P 500 had an inside day closing up .07 points. But boy, it did not feel that way. The index boomed higher on the open and, at one point, broke 4200. With the debt ceiling vote heading our way, how can you make money trading on volatility in SPX? [Click here for your answers.]( - Mark Power Income: Project Pele a Huge Score for Uranium The one area we know money will continue to be printed for is Defense spending. Any concern for inflation takes a back seat to national security issues. Self-reliance for energy production is on top of the list for the US. Last week news of a “energy productivity miracle” was released, and it’s very bullish for uranium. We’re talking about the first small modular nuclear reactors commissioned by the Department of Defense. These reactors will begin to generate electricity as early as 2025 near Lynchburg, Virginia. [Today, I'll give you a couple of good longer-term investments to consider here … and when the DoD is the driver, the probability for success is high.]( - Griff Profits In Pumps: How to Play Pullback in NVDA So, in [my last Profits in Pumps letter]( we took a look at the Nvidia Corp (Ticker: NVDA) chart. I explained that the stock had created a breakaway gap and that we need a few more days of trading at this level for the stock to continue higher. The stock was trading $390 – I said the next stop will be $400. Well, NVDA couldn’t wait. It gapped open another $16 plus dollars and quickly traded a high of $419. It proceeded to wallow a bit and eventually trade down and close at $401. It made a reversal on the day and closed the gap down to eight bucks. Here is the chart: [ Is yesterday’s candle a change in trend shooting star candle? Hard to say. Again, we need more evidence. [I do have a very inexpensive way to profit if NVDA does decide to make a pullback.]( - Licia AG's Views: NVDA Pulls Back! From the desk of Option Pit Director of Education Andrew Giovinazzi Since Nvidia Corp (Ticker: NVDA) is going to save the world with GPUs, I thought it prudent to discuss the relatively low vol there. Mark and I bought an NVDA put spread today for [Nitro Trader]( with surprisingly low IV: [ Even after a 100 point move in a week, NVDA IV is in the low 40s. 2.5% moves per day seem underpriced to me, and I thought it made a good put spread to go along with the Advanced Micro Devices Inc (Ticker: AMD) trade in [Nitro Trader](. IV in tech is still low in my opinion based on underlying movement. - 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: Skew: The difference in volatility per strike for an option. Black Scholes wants 1 volatility for all strikes, but adjusts strike volatility to compensate for the assumptions in the Black Scholes model. [( 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. 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