🚗TLT Gets Hammered

[] [The daily rundown of everything happening at Option Pit.]( [( MARK-et Open Hey OP Crew, Griff here with the Chart of the Day. Bonds got hammered today as Powell continued his hawkish tone and initial unemployment claims were reported much stronger than expected. The deeply liquid iShares 20 Plus Year Treasury Bond ETF (Ticker: TLT) broke below support at 102 and is now heading to major support at 100 (put wall). [ Consider a call fly or call spread as TLT tests the 100 level. As we enter Q3 next week, investors will certainly look to reallocate away from growth stocks and into the safer fixed income that you can get from bonds. Let’s Go! [ - EASY BUTTON: IBM Jul14 130/133 strangle closed for a 25% gain - POWER INCOME TRADER: GLD Jul21 178/177 put vertical spread closed for a 40% 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: What to Do When VIX Dips Below 13 The Option Pit VIX Traffic Light Is Red: Volatility is likely to slide. On Wednesday, the VIX fell again, closing at 13.41. It’s potentially going to close below 13 by the end of the week. To the novice trader this might seem like a golden opportunity to short UVXY, since it recently split 10 for 1. But is it? The answer is a little more complicated than many traders might think. [Here’s what’s going to happen and how you can play it.]( - Mark Pit Report: DKNG Chart Analysis I am not a crazy huge sports fan, but I like to watch the Blackhawks. Which, by the way, had a horrible season ... BUT they picked up Connor Bedard. According to my son he could be the best player of all time. Can’t wait to watch him. I have also gotten into college football. We had such a fun season watching TCU. As far as the gambling end of it, no idea. But I can read the stock chart. Draft Kings (Ticker: DKNG) has had a really nice rally since the beginning of the year where it made a double bottom at $10.69. It closed yesterday at $25.66. That’s up 58%! [Where’s it heading now? You have to go here to find out.]( - Licia AG's Views: What Does 1% Buy You? From the desk of Option Pit Director of Education Andrew Giovinazzi [Mark and I are rolling in the Trading Desk]( and we saw something we don't do too often, especially over the last year. I can buy a 1% move in SPY for less than 1% of the index value for 5 trading days: [ Check out the flow by midday. Hard to believe you can buy this much time for so little. I think this makes a good purchase, but I already have it on in [OP Mentoring](. The holiday makes traders reduce option prices so they don't have to carry the negative time decay over the weekend. That makes for a cheap, low risk entry point. The SPY Jul07 440 call and 436 puts are less than $4.00 Buy 1% for less than 1%. Only around the holiday for now. - 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: Exchange-traded fund (ETF): A financial instrument that holds other financial assets like stocks, bonds and gold. [( 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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