On The Verge: $MSFT Resurgence

Trader see the trade of the week inside... You receive this email, because you signed up to get email from YellowTunnel newsletter on 06/30/21.  If you no longer wish to receive any emails from YellowTunnel, please use the "Unsubscribe" link towards the bottom of this email. [Image] February 4th, 2024 | Issue 220   Hello Trader The first Fed decision of 2024 is in the books! While earnings and Fed talk dominated the week, I was eager to try out some new strategies I was recently introduced to. Last week, I mentioned my journey to Jacksonville for a business conference, and now that I'm back, I'm excited to share the developments and insights that emerged during my time there.  While attending conferences may sometimes feel like a daunting task, the returns on investment in terms of new ideas and strengthened relationships are truly remarkable. This time around, Jacksonville's Atlantic Beach area not only offered a backdrop of beautiful landscapes but also served as a breeding ground for fruitful discussions and invaluable connections.  My wife joined me for the conference, her first-ever, and the experience highlighted a crucial aspect of compounding investments – not just in finance but also in the realm of human relationships. It was a testament to the belief that every connection, much like every idea, has the potential to grow and flourish over time. [Leveraging a Robust AI System with an 84.97%+ Success Rate>>]( Throughout the conference, I engaged with numerous colleagues and companies, exchanging ideas on how to enhance trading and marketing strategies. The latest developments in the financial world, particularly regarding Vanna and Charm Dealer flows, caught my attention. I stumbled upon the power of these flows, realizing how a single piece of information could propel our trading endeavors to new heights.  Understanding options flows is pivotal in decoding market behavior during crucial periods, highlighting the profound impact of option dynamics on the stock market. In the world of market makers, liquidity and market depth are foundational for effective delta hedging and risk management in options trading. Inadequate or one-sided liquidity can turn a moderate order into a market-moving force, causing heightened realized volatility and subsequently elevated implied volatility.  Delta hedging activities not only impact individual trades but also cast meaningful and frequent influences on the broader market, underscoring the interconnectedness of trading actions and their collective repercussions.  The intricate relationship of market flows revolves around changes in underlying price, implied volatility, and the relentless passage of time—measured by gamma, vanna, and charm. As out-of-the-money options become more accessible and their deltas approach zero near expiry, traders may readjust their hedge by repurchasing some short positions. Just take a look at the following graphic which helped us execute a successful trade with AMD: Vanna and Charm flows resonate most during the second and third weeks of the month, orchestrating a gradual ascent in the S&P index as options expiration nears. These weeks witness the subtle yet powerful effects of these flows, contributing to a slow grind higher in the index. Understanding these concepts has become a game-changer, influencing the way we structure our option and stock trades. Just take a look at some of the work we’ve done in our latest live trading room sessions: [Live Trading Room Recordings](  An excellent example of our recent success using these strategies is our AMD trade this week, detailed in the live trading room. I invite you to witness the application of these strategies in our day-to-day trading. In the live trading room, we discussed how we leverage dealer flows to determine support and resistance levels for stocks and options, ultimately aiding in predicting possible outcomes of earnings. And then executed that exact trade!  As we embark on this journey of shared insights and discoveries, let's trade with renewed energy and enthusiasm. Here's to compounding investments, not just in the markets but in the bonds we build with each other. If you like this blog, share it with your friends, frenemies, and perfect strangers.  ([they can subscribe here](   (Advertisement) Leveraging a Robust AI System with an 84.97%+ Success Rate Many trading gurus pad their advisories with flamboyant features to divert you from their mediocre gains. But when I conceived my company and platform, the vision was to spotlight the trades.  You aren't here for extraneous or generic data that anybody can easily source online. No, you're looking for a cutting-edge trading algorithm primed to consistently identify lucrative trades, irrespective of market flux. You want to harness the same system I've used to sustain an impressive 84.97%+ success rate. Most of all, you want a system that multiplies your wealth and gives you more time. More time to enjoy life beyond portfolio micro-management. [That's the essence of Profit Accelerator Trader]( Vlad Karpel Chief Investment Officer/Founder (A portion of Yellow Tunnel sales will go to directly help the Ukrainian people)   TRADE IDEA OF THE WEEK On The Verge: $MSFT Resurgence Embarking on our Trade of the Week, we turn our attention to Microsoft Corporation ($MSFT), a quintessential player within the Technology sector. Microsoft's diverse portfolio spans software, cloud computing, and hardware, making it a stalwart in the industry. With the broader market exhibiting signs of resilience and the Technology sector gaining momentum, Microsoft emerges as a standout opportunity. As a cornerstone of the $XLK ETF, Microsoft's robust financials, innovative product offerings, and strategic positioning make it a compelling choice for traders seeking to capitalize on the sector's potential.  In the coming week, considering the insights gleaned from the market landscape and the latest data from our advanced artificial intelligence models, we find a strategic entry point for Microsoft. The alignment of current market conditions, positive sentiment within the Technology sector, and the resilience showcased by Microsoft positions it as a promising trade in the upcoming week. As we navigate the dynamic market terrain, the confluence of sector insights, market data, and artificial intelligence analytics guides our approach toward strategic trades, amplifying the potential for profitable outcomes.  Stay tuned for real-time updates on this exciting venture into the Technology sector and the unfolding opportunities within Microsoft.  This week, I’ll be adding Microsoft Corporation ($MSFT) to my portfolio! [Click here to read more about this week’s Power Trade pick…]( [Image] To great returns, [Image] Vlad Karpel YellowTunnel and Tradespoon Founder P.S. [Click here]( for access to the  Power Trading Live Strategy Roundtable Recorded every Thursday. DISCLAIMER: Vlad and his team may have a financial interest in the picks as they trade many of the same equities and options they pick. Vlad Karpel and YellowTunnel (Company) is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. All investing strategies are made available to the general public on a regular basis. We do not provide personalized financial advice or investment recommendations. As an investor, you know that any kind of investment opportunity has its risks. There is no such thing as low-risk stocks and we recommend you invest wisely and that only risk capital should be used to trade. Investing in Stocks and Options is highly speculative. No representation is being made that the use of this strategy or any system or trading methodology will generate profits. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed here and on our website. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE SUCCESS: It should not be assumed that the methods, techniques, or indicators developed at YellowTunnel will be profitable or that they will not result in losses. Nor should it be assumed that future picks will be profitable or will equal past performance. All of the content on our website and in our email alerts is for informational purposes only and should not be construed as an offer, or solicitation of an offer, to buy or sell securities. Remember, you should always consult with a licensed securities professional before purchasing or selling securities of companies profiled or discussed on YellowTunnel.com. Performance results that are discussed above are from the Live Trading Room. Multiple YellowTunnel tools were used to achieve these results. Trade % Gain/Loss is calculated by dividing the $ Gain/Loss by the Max Risk, which is the posted Stop Loss for the trade. Yellow Tunnel’s performance data represents the average return on all trading recommendations from January 1, 2020, to today. *Win rate percentage reflects the average that Yellow Tunnel’s software helped me identify a profitable investment strategy.** Triple-digit returns are not typical and are not intended to reflect the likelihood of similar returns in the future. This email was sent to {EMAIL} by info@yellowtunnel.com. Questions or inquiries regarding the website and/or service may be submitted via email to i[nfo@yellowtunnel.com](mailto:Info@Yellowtunnel.com?subject=Questions%20or%20Inquires%20PTM%20Blog). You may also complete our [inquiry form located here](.  YellowTunnel LLC, 318 Half Day Rd., Suite #215, Buffalo Grove, Illinois 60089. Website: [](  Copyright © 2024 Yellow Tunnel LLC. All rights reserved.  If you want to unsubscribe from all or some of our emails please click this [link]( [Facebook]( [Twitter]( [Instagram](   In order to unsubscribe from this mailing list, please click [here](