BY ANDREW GIOVINAZZI
June 20th, 2025
Yo Pit Crazies,
As I sit here watching the VIX hanging in the 20s and SPDR S&P 500 Trust ETF (Ticker: SPY) down 0.13% on the day, my Pro Roomies are out here dropping gems like this:
These squeezy, low-float IPOs are the stuff trading dreams are made of—perfect setups for end-of-day volume accumulation and momentum plays. One of the editors at Option Pit grabbed some puts earlier this week but smartly cut them when the stock held up. That was good discipline.
We joked he should roll that into a call instead—and then this happened today:
As my grandmother used to say, “You never know.”
The options market is great at pricing in what’s already known—but not so great at handling the unknowns.
Once you understand how the market prices risk and uncertainty, it can completely transform your trading.
Let’s start here….
Option Trade price volatility momentum
Here’s the thing: funds still want to stay long in this market. SPY’s been flat on the year, and anyone who sold the D.O.G.E. rally likely had a chance to buy back in for a solid gain. So what are the smart money pros doing? They’re picking up some option protection—because right now, that insurance is dirt cheap.
VVIX is above 100—which normally signals market stress—but realized volatility is sitting around 12%, while VIX is holding well above 20. So what are the pros doing? They’re reaching for the cheap stuff.
Take a look:
The 29-strike VIX call, which is $9 out of the money, is priced the same as the 19-strike put, just $1 away. That tells you everything. Volatility momentum in SPY is drifting lower, but traders are still hungry for low-cost upside protection.
That protection gives them the confidence to stay long—they’ve got hedges they can sell if needed. It’s one reason option prices remain elevated, even with SPY treading water. One headline shift, and SPY moves. The pros are paying a little premium to stay patient and ready.
I see the recent volatility buying as part of a “wait-and-stay” strategy. Traders want to stay bullish without being fully exposed. It’s not because they expect a crash—but with geopolitical tensions flaring, protective options give them the confidence to hold their long positions.
Another Note: All of our traders are going live Monday at 10AM for our FREE Ticker Highlight Show to give you guys:
- Top 3 stock picks for the week
- Exact entry points we’re watching
- Key technical indicators driving our picks
- Why these stocks are poised for breakouts
This is free to attend → click here to add this to your calendar.
To Your Trading Success,
AG
Andrew Giovinazzi
30-Year Trading Pro
See what's hot at option pit
CAPITOL GAINS: SMR Aug16 7 call closed for a 150% gain
DELTA STRIKE: VLY Mar15 8 puts closed for a 88% gain
PFE May17 26 calls closed for a 66% win
OP MENTORING: SPY Mar22/19 510 put calendars and 520 calls for 6.4% gain
OPTION SHOPPER: ERX Mar28 65 calls closed for a 90% gain