My Cake Trade (Yes it’s real and not food!)

The market has been disjointed for a while.

We have made note of the fact that the NDX and the SPX have been running circles around the Dow Jones Industrial Average for the last year.

We continue to believe that markets eventually normalize and one wants to be long the under performing indexes.

And I’m going to show you below an epic trade setup!

The good news for those that want to go long Dow (DJX) or its ETF (DIA) is that option premiums are cheap relative to the last 6 months.

Relative to SPX (the S&P 500) or NDX (the NASDAQ 100) the cost of DJX seems even cheaper.

Below is a chart of VXD:  the VIX of the DJX (close to DIA)

We think October calls on the Dow (DIA), connected with VIX calls or VXX calls, will pay out amazingly!

The VIX light is yellow:  It could go up or down, but will move wildly.

Your Only Option

Mark Sebastian

P.S. – This spread is the kind of advanced trades you get EVERY day in my elite “Pro” trading room.  Not only are we holding your hand, and watching over your back we are typing our trading thoughts live!  You can be “piggy-backing” off of some of the best options traders today. Call me at 1-800-Trade01.  I’m interviewing people now.

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