Video summary
In this review of a recent trading opportunity involving Chevron (CVX) gap options, Melissa Armo from Stock Swap Trading highlights how market conditions can significantly impact execution timing. She explains that while an ideal scenario involves immediate price movement following the entry—such as a put dropping sharply or a call rallying instantly—the summer months often bring choppy markets where patience is required. In this specific instance, she entered the trade late after observing the stock's upward momentum and regretted not acting earlier in the week; had she hesitated further, she likely would have missed out entirely before the price continued its rally. The successful execution allowed her to capture a substantial gain as the 195 strike calls flew through their target level quickly once the move began.
The underlying driver for this bullish movement was identified as an ongoing geopolitical conflict involving Iran and Israel, which has caused oil prices to climb steadily toward new all-time highs. Although some reports suggest that recent military events might be nearing a conclusion, Armo notes that such conflicts rarely end abruptly without further escalation or delay. Consequently, the market remains in a state of bullish anticipation for now, with potential for continued gains if the situation persists into the fall. While traders could have attempted to profit from this volatility through day trading strategies targeting specific price levels like 215, she emphasizes that her primary strategy relies on identifying and riding strong momentum rather than trying to predict every minor fluctuation in a volatile environment.
Armo concludes by reinforcing her core philosophy of following the market's direction once it establishes clear momentum, whether going long or shorting positions. She points out that this particular trade opened with a bullish gap at 186.56 and continued rising into Monday morning to reach nearly 190, validating the decision to enter despite missing the very first moment of the move. Looking ahead, she warns investors about upcoming economic data releases later in the week which could introduce further uncertainty or volatility. For those interested in learning more about her strategies for navigating such environments this autumn, she promotes an upcoming "Golden Gap" class scheduled for next weekend, encouraging viewers to prepare themselves for what promises to be another active trading season filled with significant market moves.
Read the full video transcript
Hello everyone, and welcome. This is
Melissa Armo with Stock Swap Trading and
TVX. We did calls in this, had perfect
perfect um
move up straight away, which to be
honest with you, does not always happen.
In an ideal world, I call a put, it
drops like a brick. I call a call, it
rallies immediately. Sometimes, again,
especially in the summer, especially in
placements where the market is a little
choppy, which it is right now,
um you have to wait a little bit. Maybe
a day, maybe 2 days, maybe 3.
I actually did this trade, and I'm
really glad I did it cuz I did it late.
Um I saw it going, and I wished I had
done it earlier. I actually thought
about doing it last week, and then I
just didn't. If I had, I would have been
down before it popped. Um I don't know
what it what I would have paid for it
last week, but I saw it here, and we did
it, and we did it in time. If I had
hesitated any longer, I wouldn't have
gotten it. And then it had to rally all
the way up, and then it continued here.
And I'm out of the trade. Again, we did
the 195 calls, but it flew through the
strike, which was really really nice,
and I mean, you could still be in the
trade, but the fact is that uh this was
a nice long. Again, the war
uh event, if you want to call it that,
with Iran is still going on. Oil has
been moving higher. In fact, let's look
at uh
And again, this was an option. We could
have done a day trade in this.
So, 330
was the peak here.
We didn't get to 215.
214.71. We certainly could get and make
brand new all-time highs in this if this
war keeps going on this year in the
fall. I mean, there just seems to be no
end in sight, even though they're saying
that there is an end, there never really
is, so
uh for now, again, this has been a
bullish watch for us. And we'll see
where it really goes, but it's nice when
you have a trade and it goes right out
of the gate, and you could have got out
of it the day that I called it. Again,
momentum is exactly what I do.
Whether I'm going long or whether I'm
shorting, I'm looking for the momentum
to come in and lift the move up or push
it down. Uh and honestly, that is how
you make money in the market. So again,
this was a gap up. This was a bullish
gap closed here at 186.56 and opened
then the next day. This was Monday
morning at 188.88. And again, I wish I
had done that right out of the gate. I
didn't, but we did it that day and and
like I said, if I had waited 1 1 hour
longer, I probably wouldn't have done
it.
But nice move in the CVX. Again, this is
getting bought.
Um again, this is a news event and we'll
see where it goes. Good luck everyone
and if you're interested in doing the
Golden Gap class for August, it's in a
week and a half. Not this weekend, but
next weekend. That's the class you'd
want to do if you want to get in and
trade with me this fall. And we're
having a lot of big moves here this
summer, I will say. I mean, it's like I
said, the war's not over. Plus, we have
data coming out this week. So, you got
to pick and choose what you're doing,
but I think that's the case in any
market and any environment. Uh email me
at