Me and Strazza did The Flow show earlier in the week, and one of the names we discussed as being a possible trade to get into has finally popped its head above the trigger I was waiting for.

This one has the potential to be a quick mover, so let's get right to it!

No doubt Gold Bugs have been enjoying the price action in gold instruments recently. It has been a profitable few months to be long just about anything shiny -- even silver!

The All Star Charts research team published a continued bullish piece on the sector today.

Today's options trade is a conservative bet on a continuation of this pattern. Let's get right to it.

The latest Young Aristocrats report is out, highlighting companies with steady and increasing dividends that are also displaying strong relative strength -- a powerful combination. These are some of my favorite stocks to get long when the conditions warrant.

Today's trade is in a sporting goods retailer that just broke out and looks like it's ready to start sprinting.

Consumer Staples continue to be one of the leading sectors as we head into year-end. And if you know anything about the gang here at All Star Charts, we love to be long stocks and sectors that are showing strong relative strength.

So for our last new trade for 2022, we're going to take a big swig of an energy drink maker.

The bottom line is that the bottom is in for these stocks. The evidence continues to build in the bulls’ favor.

~ @sstrazza

Starting off with fire! We're not mincing words here.

But I'm not going to steal any of Strazza's fire. Head here to read his piece on what's going on with Chinese stocks. It sets the stage beautifully for today's trade.

Caught up? Great, let's get into it.

At this point, it is almost becoming a cliche. But whenever the market sells off and Berkshire Hathaway takes a dip, it's almost becoming money in the bank to sell puts.

It's already worked for us numerous times this year. This won't work forever, of course, but until it stops working we should keep giving it a go.

With this in mind, let's get to work.

We've currently only got one delta-neutral "income" trade on the books right now, but that one will be coming off sometime this week as it is comprised of December options which expire this Friday.

In a perfect world, I always prefer to have a least some delta-neutral short premium exposure in the portfolio to help us compensate for any sideways chop that the markets might serve up to our existing directional bets. It's a a nice portfolio diversifier.

With this in mind, today's trade will be in an ETF that is currently trading smack-dab in the middle of a four month range that I expect will hold for a least a few more weeks. 

The Brothers Warner can't seem to get out of their own way. At least, that's what the price of Warner Brothers Discovery stock $WBD is telling us.

Look at this dog:

And recently, we've seen some aggressive put buyers step into the fray, as was discussed in a recent Follow the Flow Report. Here's what Strazza had to say about it:

No matter what the market, geopolitics, weather, congress, The President, retail demand, the news cycle, or even the price of the commodity itself throws at oil stocks, they just... keep... winning.

These are not trends I like to fight.

And it seems options markets aren't willing to fight it either as today's trade is in an oil sector bellwether that is now pricing in the lowest volatility in over 9 months as the stock flirts with post-Covid highs.

While bargain clothes shoppers seem to be driving profits in a way Wall Street likes, it takes a certain kind of trader to buy stock in the company when it's making new All-Time Highs.

Well, I just happen to be that type of trader! In fact, one of my favorite setups is to buy stocks making fresh all-time highs. There is no overhead supply of bagholders looking to dump the stock to get back to even. Nothing but blue skies ahead.

And when options premium has collapsed, we can buy long calls to put ourselves in a position to enjoy the possibility of unlimited gains.

Let's go shopping!

After some pretty significant broad market moves in both directions in recent weeks, it's starting to feel like market participants are a bit tired. And can we blame them?

While volatility is often beneficial to active traders who have a good game plan to pounce at opportunities that are presented in such environments, eventually, we get tired. It's exhausting.

Knowing this, we can take advantage of this potential situation by crafting trades that take advantage of the likely decrease of options premiums that often takes place when traders are tired and stocks and indexes start trading in smaller ranges.

So let's use the Utilities sector to express a bet on compressing ranges...

We've got an oil stock on the doorstep of multi-year highs, a recent shakeout that probably rinsed out the hot-money crowd that came into the stock following their latest earnings report, and implied volatility plumbing new yearly depths.

This sets up an excellent opportunity to take a flyer on a simple long calls trade.

Let's dig in!