🚗 We’ve Struck an Oil Opportunity

[] [The daily rundown of everything happening at Option Pit.]( [.]( MARK-et Open Griff here with the Chart of the Day. Time to get back into the Oil trade … What a washout of the longs .. We talked about how bearish Seasonals are for Oil in Q4 … The other factor is the narrative slowly shifting to a hard landing not a soft one… However, we know how incredibly bullish the fundamentals are … So you want to position yourself to hold it longer-term. [ I am looking to buy XOP on a touch of the 200 day and would purchase a call calendar with the long call exploring in Jan ‘24 and short call in Oct ‘23 then rolling the short call forward each month … You could end up owning the long call for free before the end of the year … Let's Go! [ [ - Power Income: Closed an HYG put fly for an 87% gain. Want to find YOUR winning fit? Give our Customer Care Team a call at 1-888-872-3301 Monday-Friday from 9 a.m.-5 p.m. EST. Or email them anytime at support@optionpit.com. Power Income: Prepare for the Unexpected Talk about bad breadth … This market has dog breadth and the chart below says it all … There are more stocks in the S&P 500 below the 50 DMA than there were during the regional banking crisis? The question is this … Has enough damage occurred in the sector that matters most i.e. bonds to trigger a liquidity injection? [I’ll lay out the argument for "yes" right here...]( - Griff Trader's Edge: Read Between the Chops – VIX Update On Monday, the market experienced a complete chop fest. The intraday range wasn't really high, but it wasn't exactly small either…we had an over 1% range on the day. And the way the market moved during that range was pretty dramatic. In the end the S&P 500 closed up .36 points…the NDX, up .83% over 122 points… While the dow and the rut were down… the RUT taking it on the chin. So what is happening here….what does this indecisiveness mean for volatility… [Here is your answer and how to trade it…]( - Mark Profits in Pumps: Let’s Talk About Gamma I wrote about an option’s delta the other day. Today, let’s talk about gamma. First, here’s the definition of gamma: The rate of change on an option’s delta as the stock moves. The delta tells us how much the option price should change with each dollar movement of the stock. Here’s an example … A 50 delta option should move $.50 up or down then the stock moves $1 up or down. (Calls go up with the stock and puts go down as the stock moves up, and vice versa.) Now, that is what happens when nothing else changes … but as we know, options have a lot of moving parts. But for the sake of our example, let’s say everything else stays the same and the delta moves exactly as we expect it to. Going back to gamma, it measures how that delta will move as the stock moves. [Here's exactly what I mean...]( - Licia AG's Views: The 3 day rule is still in effect From the desk of Option Pit Director of Education Andrew Giovinazzi So I closed some VIX Nov15 21 calls I was holding this morning. Why? Because we were 3 days into a VIX rally and it failed big time. I closed them this am in the Trading Desk and added some VIX puts. VIX momentum is a tricky thing but cause it decays. SPX can rally and hold a rally with small cost of carry. VIX is a decaying asset, so it needs to keep the momentum going or it goes the other way. [ This does not mean the recent market volatility is over since it is higher correlated to bond yields. Today was the first bond bounce in a while. For now there is less volatility projected going forward even without a House of Reps Speaker. -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: Credit - The amount of money credited to an account when a trader sells to open an option or initiates a credit spread. [( 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? 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