💥Squeeze Alert: Are PAGP Options Ready to Explode

Plains GP Holdings, L.P. (PAGP) is a midstream oil and gas company that delivers its product primarily via pipelin Plains GP Holdings, L.P. (PAGP) is a midstream oil and gas company that delivers its product primarily via pipelines. The stock showed up on our list of [compressed stocks](this morning. We calculate the compression signals in two ways. We calculate using the stock price, and we also calculate using the stock’s total return. Because this is a limited partnership company where a large portion of the earnings are paid out in regular dividends, we’re going to focus on the signals that use total return calculation for this asset. The total return calculation showed two previous signals that you can see below. The chart on the left shows a signal in 2018 where the stock jumped higher and didn’t look back. The chart on the right shows that the stock jumped initially, then dropped back down into profitable territory. If you used the method of exit that we teach in our ODDS Online Coaching, you could have made a profit on both legs of our neutral straddle strategy with the 2022 signal. If you are new or if you need a refresher, we will show you that method again in today’s coaching session at 2pm ET. [Get great trades every day--Click here]( In this time series chart, it doesn’t take a calculation to see that share prices for PAGP are trending flat. While there is an earnings report expected before the November 15th options expiration, this stock does not tend to move big on earnings announcements. The stock price tends to move more when dividends change and when there is uncertainty in oil and gas prices. Whether it’s the economy, the Fed, demand from China, disruptions in supplies caused by geopolitics, or unexpected deviations from seasonal factors, the path of energy prices is completely unpredictable and potentially volatile. [This Volatility Term StructureÂ]( chart for PAGP shows us the implied volatility for the at-the-money options for each expiration. This chart shows that volatility expectations for expiring November 15th, are relatively low. That means options prices are also relatively low. [This MDM graphÂ]( compares the modeled expected distribution for future stock prices (the orange line) with the actual distribution of PAGP’s share prices over the past 3 years (the blue histogram). You can see that the actual stock movement shows that PAGP tends to make big moves much more frequently than November options prices expect. This tells us that PAGP options expiring on November 15th are relatively cheap. This is an option buying situation. [This Volatility ConeÂ]( chart for PAGP compares implied volatility expectations for each term to the historical volatility for that same term. The blue line shows the average historical volatility; the purple lines show each HV measure’s highest high and the lowest low over the past 3 years. You can see that all terms are below the three-year average. This confirms that PAGP options are relatively cheap. PAGP share prices are compressed. The stock has a history of making big moves shortly after a compression signal. Options for the November 15th expiration are relatively inexpensive and there are many potential catalysts that could spark a big move in the next few weeks. To get the specific details and prices on today’s trade ideas, be sure to read today’s ODDS Online Daily Option Trade Idea.  To access Odds Online Daily and be able to see any stock you are tracking in this software, click [here](. Thank you, Don Fishback --------------------------------------------------------------- See Related Articles on [TradewinsDaily.com]( [Plains GP Holdings, L.P. (PAGP), Trending Stock Report]( [Chart of the Day: UPS (UPS)]( [Market Climb Continues–What That Means]( [Cummins Shares Powering Ahead!]( [Palantir Technologies, Inc. (PLTR), Trending Stock Report]( --------------------------------------------------------------- [TradeWins Logo]( © 2024 Tradewins Publishing. All rights reserved. | [Privacy Policy]( | [Terms and Conditions]( | [Contact Us]( Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins. For additional information on auto-trading, you may visit the SEC's website: All About Auto-Trading, TradeWins does not recommend or refer subscribers to broker-dealers. You should perform your own due diligence with respect to satisfactory broker-dealers and whether to open a brokerage account. You should always consult with your own professional advisers regarding equities and options on equities trading. 1. The information provided by the newsletters, trading, training and educational products related to various markets (collectively referred to as the "Services") is not customized or personalized to any particular risk profile or tolerance. Nor is the information published by TradeWins Publishing ("TradeWins") a customized or personalized recommendation to buy, sell, hold, or invest in particular financial products. The Services are intended to supplement your own research and analysis. 2. TradeWins' Services are not a solicitation or offer to buy or sell any financial products, and the Services are not intended to provide money management advice or services. 3. Past performance is not necessarily indicative of future results. Trading and investing involve substantial risk. Trading on margin carries a high level of risk, and may not be suitable for all investors. Other than the refund policy detailed elsewhere, TradeWins does not make any guarantee or other promise as to any results that may be obtained from using the Services. No person subscribing for the Services ("Subscriber") should make any investment decision without first consulting his or her own personal financial adviser, broker or consultant. TradeWins disclaims any and all liability in the event anything contained in the Services proves to be inaccurate, incomplete or unreliable, or results in any investment or other loss by a Subscriber. 4. You should trade or invest only "risk capital" money you can afford to lose. Trading stocks and stock options involves high risk and you can lose the entire principal amount invested or more. 5. All investments carry risk and all trading decisions made by a person remain the responsibility of that person. There is no guarantee that systems, indicators, or trading signals will result in profits or that they will not produce losses. Subscribers should fully understand all risks associated with any kind of trading or investing before engaging in such activities. 6. Some profit examples are based on hypothetical or simulated trading. This means the trades are not actual trades and instead are hypothetical trades based on real market prices at the time the recommendation is disseminated. No actual money is invested, nor are any trades executed. Hypothetical or simulated performance is not necessarily indicative of future results. Hypothetical performance results have many inherent limitations, some of which are described below. Also, the hypothetical results do not include the costs of subscriptions, commissions, or other fees. Because the trades underlying these examples have not actually been executed, the results may understate or overstate the impact of certain market factors, such as lack of liquidity. Simulated trading services in general are also designed with the benefit of hindsight, which may not be relevant to actual trading. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. TradeWins makes no representations or warranties that any account will or is likely to achieve profits similar to those shown. 7. No representation is being made that you will achieve profits or the same results as any person providing testimonial. No representation is being made that any person providing a testimonial is likely to continue to experience profitable trading after the date on which the testimonial was provided, and in fact the person providing the testimonial may have experienced losses. 8. The author experiences are not typical. The author is an experienced investor and your results will vary depending on risk tolerance, amount of risk capital utilized, size of trading position and other factors. Certain Subscribers may modify the author methods, or modify or ignore the rules or risk parameters, and any such actions are taken entirely at the Subscriber's own election and for the Subscriber's own risk. If you wish to unsubscribe from our newsletter, click [here]( TradeWins Publishing Corp.528 North Country Rd.St. James, NY 11780