🚗 The Beginning of a Rift

[] [The daily rundown of everything happening at Option Pit.]( [( MARK-et Open Hey OP Crew, SPX was up most of the day today. At one point, up .50% on strong gains from banks of all places. We have 2 trades cooking in [Easy Trade Button]( and they both could have been closed today. Let’s see if the stop routine will work. So both SPX was up and VIX was up after a low VRO. VIX settling this morning at 13.02 is usually no bueno for SPX. VIX cash spent the whole day going up. [ We are looking at the Invesco QQQ Trust (Ticker: QQQ) rebalance and from what I see, it will cause more fits with SPX than anything else, since the top 7 stocks are going to get sold after getting squeezed UP all week. Mark and I came up with a short SPDR S&P 500 Trust (Ticker: SPY), long Dow Jones Industrial Average Trust (Ticker: DIA) trade in [Nitro Trader]( today. Let’s see how it plays out early next week. Let's Go! [ Pit Report: MSFT Breakdown The Rebalance is days away. Yet the stocks that are set to be sold are at or near all time highs. NVDA, MSFT, META, you name it … they keep going up. The AI bots run these stocks higher, creating a rift between the Magnificent 7 and the rest of the market. Friday’s rebalance is going to throw some of these stocks for a loop. But in the long run, some of these stocks are going to keep going up. With that in mind, I thought it would be worth it to take a look at one of the big gainers. Is the RIFT still a deal? [Click here to find out.]( - Mark Power Income: NASDAQ Special Rebalance Specifics We may never see a week like this week again … Mega-cap stocks have outperformed the overall market to an insane degree over the past nine months. Now we head into the next week with a restructuring of the NASDAQ 100 that will take the top 7 stocks by market cap from 55% down to 40%. We also go into monthly OpEx with an extreme positive gamma position, which will force significant selling of long stock hedges and put additional pressure on the “Magnificent 7.” [Today, I’ll lay out the details and look at a potential “Rift and Snapback” trade to consider.]( - Griff 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: Nasdaq - The over-the-counter exchange for trading securities. Nasdaq-listed stocks usually have 4-letter symbols like AAPL or MSFT. [( 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. Want to change how you receive these emails? You can [Unsubscribe]( or [Update your preferences]( This email was sent by support@optionpit.com. 1-888-872-3301 [Option Pit]( | 190 S LaSalle Suite 3000 Chicago, IL 60603 | [Privacy Policy]( 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