🚗Biden Breaks the AI Boom

[] [The daily rundown of everything happening at Option Pit.]( [.]( MARK-et Open Hey OP Crew, Griff here with your Chart of the Day. The AI boom took a hit today as the Biden administration confirmed that exports of Nvidia’s (Ticker: NVDA) made-for-China semiconductor chips would be restricted for sale there. The stock had a wild ride as it initially tanked 8% from yesterday’s close but then rallied back above the opening and settled in the middle of the range. Take a look at what may be a head for NVDA after losing a serious chunk of revenues: [ This down trade may complete the above head and shoulders pattern, and if the stock drops below the neckline, it would project a melt-down to $320 – a 25% drop from here. Certainly something to keep an eye on … Let’s Go! [ Trader's Edge: What to Buy When VIX Is Booming The VIX got smoked on Monday cutting about half its gain from Friday off. It closed at 17.21. The S&P 500 on the other hand had a booming day managing to rally over 1% to 4373.63 This means that if you bought VIX or UVIX puts late on Friday, you made a killing right? Not necessarily! Let me explain why buying puts on a vol product when VIX is blowing higher is not always the best play. [Click here and I’ll show you the best play.]( - Mark AG's Views: Why Price Matters From the desk of Option Pit Director of Education Andrew Giovinazzi Here I am at the midday meander and stocks are mostly flat (except for Nvidia Inc (Ticker: NVDA)) but VIX is still higher. Powell speaks this week but for the most part the bond market has been taken over by the …bond market. Yields are up and prices are down on a hotter Sales Number. Economic growth is good, and if the NFP number is any sign, growth looks ugly in the morning on rates but gets better as everyone but the algos understand it is good. [ The biggest issue is the geopolitical news. Biden travels to Israel, and that might help things. But for now, most of the rally in VIX has been on the Hamas invasion of Israel, and that vol event is not over. VIX should be down at least .50% today on the nonaction, so I have to chalk this up to uncertainty about geopolitical events. It also makes the VIX Nov cycle crazy cheap given the VIX potential moves. Relative Value will be a huge topic in the Saturday class, as it’s a huge trade factor for me on a daily basis. [If you want to learn to use it to your advantage, sign up here](. - 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: Cash-secured puts: A sell-to-open short put where all the margin necessary is in the account to buy the stock at the strike price. [( 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