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.
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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.
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