Yo Pit Crazies

Option Pit is hosting Trade Fest II on Tuesday and Wednesday of this week – open for all who want to attend …

I will be talking about vol, selling juice and the dividend play for the second half of the year. Register here.

Now, these days the markets can surprise and positive data is definitely on the surprise side of the ledger lately.

Any real downtick in inflation expectations and stocks will rally. 

The Friday rally was just a bit above the expected move but that is what we get with a 24 VIX..

1.5% moves in the S&P 500 are expected. We got 1.92%, so that stopped the VIX drop by midday Friday.

We need more earnings numbers to get out of the doldrums we are in.

Alphabet Inc. (Ticker: GOOGL) could be the bellwether.

GOOGL Splits This Week

GOOGL will split 20-for-1 by Monday. I added some GOOGL to my personal account over the last two weeks and I like this stock long term now that it is back to a more normal multiple.

That is the key. The market is no longer paying higher multiples. (But it might start again.)

GOOGL will be a good one to watch into earnings.  If we see a decent number, after a split, it could be off to the races.

GOOGL two-year chart.

Post-earnings, GOOGL should make a good risk reversal candidate with the higher volatility in the market.  The second half of 2022 might not look like the first.

The Rundown

Pro Trading Room

Cat picking up credits in Invesco QQQ Trust (Ticker: QQQ) puts:

To Your Trading Success,

AG