We’re Not Most People

[logo, header, fopr] September 23, 2024 Trader, let’s talk about the next few weeks heading into the election on Tuesday, November 5th… And we’ll start with a mini-lesson on VIX futures and how they’re priced. VIX Futures Heading into Nov 5 AG is famous for using the VIX curve, and if you don’t know this tool, you should learn it. It has something to do with virtually every option trade you could place… from pricing of options to timing to how much you can make. The VIX curve shows the pricing of VIX options on a rolling 30 day basis. [contango] So the distance here (this is an EXAMPLE) from M1 to M2 is the difference in VIX prices between April 1 and May 1. This curve here is in a state of “contango.” You’ll also hear AG talk about “backwardation,” which is when the curve (blue) is below the green dotted line (current VIX price). ([Here’s a YouTube of Mark breaking down contango vs. backwardation to refresh your memory]() So… what the hell does the VIX curve have to do with Nov 5 and why should you care? Well… Starting next week, VIX futures will begin to “price in” the election. The futures run on a 30 day out basis… so starting on Oct 5th, they’ll factor in 30 days from then, which is obviously November 5th. When I say “price in,” I mean they’ll factor that event into their VIX calculation. Think about it like odds on an NFL game. Jags vs Bills is tonight. Bills are -5.5. Imagine today we found out half the Jags have COVID. That line would swing even further away from 0… to maybe -10 or more after it “priced in” new information. VIX is at 16 right now. That could go to 20+ once the futures price in Nov 5. And while most people are dreading that, we’re not most people. Here’s what that means for us as active traders, and I say ACTIVE for a reason. Why We’re Not “Most People” Most people want to sit on their hands. They’re content to say… screw it, I’ll take the month off and we’ll see what happens AFTER the election. That’s a missed opportunity, especially when it [comes to the Flash 10.]( AG and I have been talking, and he believes we are going to see extremely well-timed entries on at least 2 of our Flash 10 positions over the next 3-4 weeks precisely because so many people are “taking the time off!” It could be the difference between snagging a $1.20 option now… And paying over $3 come November. Differences like that are what separate the best traders from the pack. [I want you to put in the time NOW so that we can sit on our hands for 6-9 months and ride these call options higher POST-election.]( Cause no matter who’s elected… the Flash 10 are primed in sectors that are set to benefit if EITHER candidate wins. [If you haven’t seriously considered joining Flash 10, do it now.]( These are 10 carefully selected options or stock picks (depending on what level of membership you choose) that we believe have the potential to 2-10X over the next year. AG has been trading this way for over two decades, and we just brought this to the forefront of what we’re trading at Option Pit because the option fingerprints he’s seeing right now in the Flash 10… He’s never seen levels like this before. Don’t sit on your hands for the next 30 days… [Trade Flash 10.]( [sig, hannah] --------------------------------------------------------------- Don't miss when our traders go live! Get an alert everytime we open the live rooms to all of our readers for free by selecting the calendar you use below. Add Option Pit Live Events to Your Calendar [Apple]( [Google]( [Outlook]( [Outlook.com]( [Office 365]( [Yahoo]( All the Right Options. The Option Pit Team brings more than 150 years of experience to you every day. From the trading pits of Chicago to the world's largest banks to the halls of power in DC -- they've done it all. Now they’re collectively focused on one thing: making YOU a better, more profitable trader. Click the button below to schedule a call with our concierge Customer Care Team to find your best fit today. 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. 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