Ready for the Next Stock Market Cycle?

Yo, Pit Crazies,

 

Ah, what a glorious morning!

 

One of my favorite students took my Palantir Technologies Inc (Ticker: PLTR) idea to buy some calls and turned it into a 166% overnight gain yesterday.

 

 

For those of you who want to learn how to trade options on a swing – 1-4 week basis – check out my service bundle (Capitol Gains/SPYMaster/ Easy Trade Button) and earn while you learn. Trade like Victoria! Call Customer Care at 1-888-872-3301 for the details today.

 

Elsewhere yesterday, we had another broad market day …

 

There were steady gains after being down most of the day, as better economic news overshadowed the rate rises that the spooky Fed is near-certain to deliver.

 

 

Spooky early, better late …

 

Here is why that is important.

 

VIX is teetering on Zone 2 

If stocks can move to a lower implied volatility, that usually presages a more trending market.  

 

There are no sustained rallies at 24 VIX. There are pops, there are bounces, there are moonshot gaps – but those gains rarely stay.

 

Since the beginning of this year, the rallies have mostly been accompanied by drops in VIX and SPX. VIX has Zone 2 volatility since this time last year.

 

Note: Remember Zone 2 volatility is the 13-to-17 range in VIX and would mark a measured tone change in trading as we are poised to leave the uncertainty of the rate hikes.

 

This is a topic Licia Leslie will cover extensively tonight.  It will reset the dynamic going forward and lead to better trading opportunities in the Profit Window. Check it out.

 

The Rundown: What’s Trading Around Option Pit

 

Easy Trade Button

I closed my Alphabet Inc (Ticker: GOOGL) call calendars for an 18% gain yesterday,  for my fourth EZB win in a row.  I rolled to a GOOGL Mar17 105s, so I have a can’t -ose free shot if GOOGL makes a move back to the $105 area it was at last week before the AI overreaction. 

 

To Your Trading Success,

AG

Andrew Giovinazzi

Andrew Giovinazzi

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About the Author

Andrew Giovinazzi

Andrew Giovinazzi

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

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