🚗AI Hype!

[] [The daily rundown of everything happening at Option Pit.]( [( MARK-et Open Hey OP Crew, Griff here with the Chart of the Day. As expected, we’ve had 2 down days in a row with SPX down 2% from the high. Today the option flow produced positive deltas for the iShares Russell 2000 ETF (Ticker: IWM) and the S&P 500, and small negative deltas for the Invesco QQQ Trust (Ticker: QQQ). This may signal that the selling is a continuation from Friday’s OpEx, and there may not be much further to go on the downside. One stock that may already be a buy now is C3, AI inc. (Ticker: AI). After triggering an RSI reversal on the new high, AI breached its $40 Put Wall today and bounced off its high volume point of control: [ The AI hype settled down. With a Morningstar fair-value price of $55, the 39-40 area is a good location to get long. Consider a JUL21 41.5/44.5 call spread for under a $1 with a stop on a close below 37.5. Let’s Go! [ [ - DELTA STRIKE: RRC Jul28 28 calls closed for a 54% gain - POWER INCOME TRADER: QQQ Jun23 359/358 put spread, 365/364 put spread closed for a 7% gain - WIN THE WEEK: SPY Jun23 437/436 put vertical spread closed for a 74% 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: VIX Isn’t Behaving The Option Pit VIX Traffic Light Is Red: Volatility is likely to slide. The VIX closed the day at 13.89 on Tuesday after a long weekend; when we adjust for the weekend, this is down. How can this be? The S&P 500 has been down two days in a row. Isn't the VIX supposed to be up when the market is down? [Here’s why the VIX is behaving like this and what to do about it.]( - Mark Power Income: Triple Witching Challenges Bull Run As I laid out last week, the main significance of Jun16 OpEx was that SPY & SPX AM options, and then SPX e-mini futures, all expire at once. This removed a very large amount of positive gamma, which was providing volatility-killing liquidity to the bull market. The mood of the market changed on Friday after an early SPX run higher was snuffed by put buyers for most of the day: [ The put buying continued yesterday, and we could see further downside this week. [Today, we’ll dissect the Tuesday option flow and take a look at a trade that may make sense this week.](- Griff Profits In Pumps: An 80% Win Rate!! Not sure if you are aware, but Mark Sebastian and Andrew Giovinazzi have racked up an 80% win rate in May and June. That’s fantastic! [ [They are willing to tell us all about it tomorrow night at 7 p.m. ET.]( Not only will they reveal their secret to that 80% win rate, but why they think options may be at their best value now than they have been in years. They are going to teach us the perfect trade for any market and name the exact sector that is behind this new bull market. Mark and Andrew will share with us their current stock watchlist and an exclusive trade idea. But you must be there. As an added bonus, you will receive Andrew’s new special report, How to Trade Realized Volatility and Gamma in a Bull Market, just for signing up. You know they always have a good time, you don’t want to miss this one. [You can register for free by clicking here.]( [Once you’ve done that, check out my trade idea in Block (Ticker: SQ).]( - Licia 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: Leverage: Essentially getting more bang for your buck. For instance, buying one call option that controls 100 shares of the underlying, for less than it would cost to buy 100 shares outright. [( 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. 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