🚗A Week of Rifts and Snaps

[] [The daily rundown of everything happening at Option Pit.]( [.]( MARK-et Open Hey OP Crew, Griff here with the Chart of the Day. This was a hot week for “Rift & Snapback” trades! A historic special rebalancing provided the flows for paired bear strategies on the top 7 stocks that were down weighted and ~18 stocks that were up weighted in the NASDAQ 100 index. This one in particular was interesting – the call spread in Honeywell International Inc. (Ticker: HON) gained 55% while the Put Spread in the FANG+ ETF (Ticker: FNGS) gained 75%: [ That is the power of the Rift & Snapback strategy – thank you, Mark Sebastian, he idea man! Next week, JUL21 OpEx will provide more winning trades Have a great weekend everybody! Let’s Go! [ [ - MAKE THE CALL: HON, FNGS Aug18/Jul28 210/212.5 call diagonal, 36/34 put spread closed for a 45% gain - POWER INCOME TRADER: AMAT Aug4 137/139 call vertical spread closed for 25% gain - POWER INCOME TRADER: NVDA Jul28 445/440 put vertical spread closed for a 3% gain - WIN THE WEEK: HON Aug18 220/230 call vertical spread closed for a 75% gain - WIN THE WEEK: SBUX Jul28 103/104 call vertical spread closed for an 89% 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: Market Reacts to Rebalance The Option Pit VIX Traffic Light Is Red: Volatility is likely to slide. Ahead of the big NDX rebalance, the market basically went straight up … until yesterday. Even with the Invesco QQQ Trust (Ticker: QQQ) blood bath on Thursday, the Q’s picked up 10 billion dollars in market cap since the rebalance was announced. Some might say, “well then, who cares about your rebalance?” The answer is the market. On Wednesday we saw a BIG sign that the SPX and NDX might be getting a little over done – on Thursday that began to be confirmed. [Click here to see what I saw and how I am playing it.]( - Mark Pit Report: Microsoft Coming Back to Earth It took a historic NASDAQ 100 index special rebalancing to bring Microsoft Corp (Ticker: MSFT) down from nose bleed levels. The stock is down 6% from the all-time new highs posted just this past Monday. The previous high was 351.47 on June 16. MSFT’s NASDAQ 100 index weighting must decrease by 3%. This is no small feat. [Today, we’ll look at the implications for its price and where you should consider stepping in to buy.](- Griff Profits In Pumps: A Healthy Snack I am pretty sure I have mentioned, in the past, what a health nut my husband is. His endeavors have paid off. He just had his colonoscopy and the doctor said, “Your colon is so clean I could live there.” We thought that was funny. Especially as he will be sixty next year. My husband has been pretty strict about eating and cooking at home more often. “Restaurant food is poison.” Of course I love to go out to eat. It’s a good thing he is the cook in the family, so I cannot complain. I do do the dishes, though. Here’s one of his favorite healthy snacks and they are actually pretty tasty: [ Three ingredients, that’s the key, sweet potatoes, coconut oil, and sea salt. Salt is another thing he is particular about, but that is another story for another day. Let’s trade! [Click here for today’s trade idea.]( - Licia AG's Views: QQQ Closes at a Week Low From the desk of Option Pit Director of Education Andrew Giovinazzi We are waiting for Invesco QQQ Trust (Ticker: QQQ) to rebalance. However, into the close, QQQ was having a hard time finding a bid and closing on the lows of the week. [ QQQ 5 day chart with 1 day candles We might see some fireworks on Monday. While we said the QQQ rebalance would cause some dislocation, it did give us the biggest QQQ selloff in weeks. - 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: Backtest: A re-test of a breakout move above/below a key support/resistance level that either confirms or rejects the initial breakout. [( 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. 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