5/13 Best Idea For The Week Ahead

$23B co nearly 50% off its highs looks primed.

This is how I am seeing the market right now, we are sitting on the edge of this trend going back 8 months. The debt ceiling drama has yet to unfold, the VIX has yet to show signs of panic, and I believe we see both of those things in the coming weeks.

Just remember, with the VIX as low as it is now, even if your equities stay the same price, if the VIX spikes from 16 to 25 or 30, your puts sold are going to be down dramatically which played a big role in why I exited most of my long positions for now. It’s a short term thing but I do believe we get a VIX event as we get closer to the panic involved with the US possibly defaulting. Even if we all think the US won’t default, there very well could be that moment of panic that sends the VIX parabolic and you don’t want to be levered short puts into that.

With that said, you can still sell puts on quality names, but be cash secured if you so choose and this week I have a $23B company that is a leader in its space and nearly 50% off it’s all time highs in 2021. It’s profitable, pays a dividend and it is the largest component of the sector ETF. Also, it has seen a flurry of put sales over the last month to discuss. No it’s not Cameco……….