Ready For Fall Setups?

Try These Low-Cost Plays In Commodities…

In this week’s video, we’re going to take a look at the kind of markets we are watching. I’m not just talking about great trades, but setups that are going to continue through the fall trading season.

Many traders don’t realize this…

But you don’t have to be a futures trader to trade commodities.

UNG is an exchange traded fund (ETF) of natural gas.

There are many commodities on the move right now, namely energy. In today’s video we start by looking at how we handled our trade in UNG.

This was a cool trade because UNG options are pretty darn inexpensive. We scooped up these options for $133. Right now they’re sitting at $325. Not bad, Gang!

We can take advantage of these types of trades if we know where to buy the option. My GRaB Candles are the first place I look to find these kinds of setups.

Know where the sector flow goes…

Flow is not going under the mattress. It’s going to find another sector. There are sectors like staples and utilities that tend to get the flow when people are hiding for cover. And that’s exactly what we’ve been taking advantage of this year.

With that in mind, we scooped XLP at $187 on September calls and they are now sitting at $275. This  trade is continuing to reach higher highs and September is already here, so we also scooped up December calls at $220. We’re beginning to scale out at $277. 

I believe we have a whole lot more upside as we go through fall.  

Notice that the options I’ve talked about are sub $3 options. Very affordable and very scalable. You could buy two, four, six, or eight  of these all depending on your account size. 

Can we apply the same ideas to stocks? 

Let’s look at Duke Energy Corp (DUK). This is another defensive name, and it’s a heavily weighted stock within the utilities ETF. This ETF never gave us an option to jump in, but the individual stock was a play.

We jumped in at $290 calls and pushed it through $330. This trade is just getting started. We’ll be looking for higher highs in DUK. 

If you’re concerned about larger rollovers, these are great defensive places to be in this market. 

These are trends that are low cost and affordable enough that almost any size account has the ability to sit through the volatility as we kick off the fall trading season. 

This is exactly the type of opportunities we will continue looking for in Sector Secrets Mastery.


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