Friday is Quarterly OpEx so Prepare Ahead of Time

[] [The daily rundown of everything happening at Option Pit.]( [.]( MARK-et Open Griff here with the Chart of the Day. The market certainly felt much worse than it traded today. The chart below shows the estimated gamma at all strikes for SPX … Call gamma is in orange and out gamma in blue. The most important strikes are 4200 and 4210 with the 50k JPM put at 4210. Friday is quarterly OpEx and if the market starts grinding higher the negative gamma pull of the 4200/4210 strikes will expire creating a tailwind for a move back towards 4300 or higher. [ Today Make the Call closed its QQQ 370/350/330 DEC15 put fly for 110% gain and also closed a 6/7.5 Sep29 put credit spread for a 85% gain on credit … We used the MSOS credit to purchase an OCT20 MSOS 8/10 call spread. Chuck Schumer has been petitioning to boost support for legalization, so we could see another move towards the $10 area in the days/weeks ahead … Let's Go! [ Trader's Edge: The Biggest Bond Market Impact in Over a Decade - Midweek Update It's Mark Sebastian with your Midweek Update... I’ll catch you up on the biggest market swings, the stocks I am trading, and the most important actions you can take to help your trades today. Here’s what’s on my list: Remember my VIX analysis from yesterday? Well, I called it right, and Monday's slow start led to Tuesday's bloodbath. The S&P 500 is facing a near-term bearish trend. VIX futures are on the rise, and we're on the verge of partial backwardation. I cover what that means for the market… The bond market is sending signals, with yields hitting 12-year lows. Discover how this could impact stocks. We've had some successful trades, including Apple and Delta. Plus, our bearish Apple play is raking in profits. Check out our new trade in IONQ, and get updates on our SPX, and JPM vs. Morgan Stanley trades. Don't forget about the Pit Report—it's a goldmine of perspectives from all the expert traders here. And mark your calendar for our Monday Ticker Highlight Show, where we create a trade together. [Sign up here if you aren’t already reading the Pit Report.]( Interested in bonds, gold, oil, and equities? Tune in tonight as Griff breaks down market dynamics. [Save your spot here.]( For this and all the rest, check out today’s [Midweek Update](… - Mark [( Power Income: It’s Official: There Will Be No Soft Landing When I fired up the server this morning there was a Wall Street Journal article left for me with the following title: Americans Finally Start to Feel the Sting From the Fed’s Rate Hikes Now, as you know I have been saying this for months as Powell and Yellen kept reiterating their same rhetoric about how strong the economy was and how they could manage a soft landing. So, why is this article published now? Well, I am sure this topic came up much earlier but of course the media was told buy its financial services sponsors not to publish anything negative. There is only one reason this article was published now. The Fed is getting worried about the fragility of the financial system and an all-out credit crisis building due to them losing control of the market. [I think it is too late for that, and today we'll run through the reasons why.]( - Griff Profits In Pumps: Pitfalls to Trading Mentality As traders, we know that one of the most difficult aspects of trading is to keep our emotions out of the equation. If you are having a losing streak, trade less contracts and carry less positions to lower your risk. When you are on a winning streak, it’s ok to trade a few more contracts and take on a bit more risk. Just don’t get too cocky. The market will always put you back in your place. Always. Look at each trade separately. This will help take out the emotion. [ Patience is key as entering or exiting too soon costs money. Wait for the confirmation. It is better to pay more or sell for less than to enter a losing position. Always have a trading plan before you enter that order. And stick to your trading plan. It is easy to get shaken out of your position in a volatile market. Have a stop loss on your option position (I like 30%) but also refer to your chart. If your chart bias is still intact, stay in your position. Don’t be blinded by your own bias. Look at each stock and its sector individually. Don’t be afraid to take a short position in a stock even if your overall market sentiment idea is bullish. Remember, nothing in trading is 100%. NOTHING. - Licia AG's Views: Where is the Queen of Candlesticks when I need her? From the desk of Option Pit Director of Education Andrew Giovinazzi After several days of selling off, the SPDR S&P 500 Trust ETF (Ticker: SPY) had what appears to be a doji. Traders use a doji, or round trip in a day to finish unchanged, as a sign of a market reversal. [ If Congress kicks the can again, don’t be surprised by a gap up in SPY tomorrow. $430 or higher SPY is an easy target. -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: Stock-replacement strategy - Usually employed after a large gain in the underlying stock, wherein the shares are sold and calls are purchased in their place. [( 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