So a Robot Delivered Some Food

Andrew Giovinazzi

BY ANDREW GIOVINAZZI

July 23, 2023

Yo Pit Crazies,

Imagine my surprise when my mom tells me a Mexican restaurant in a small town in North Carolina has a robot delivering food. The owner tells my mom they can’t staff the restaurant, a booming restaurant at that. I don’t recall this being a thing pre-COVID but it’s a thing now.

My point is that technology will solve problems. That’s what it does. Main Street business will benefit. The whole fracking boom in oil was from oil and gas technology. That’s why tech stocks boom and bust.

While I’m already positioned for the Invesco QQQ Trust (Ticker: QQQ) for Monday as the rebalance plays out, the whole mass of 4993 stocks in the Wilshire 5000 should benefit from AI.

I am currently riding some JPMorgan Chase Corp (Ticker: JPM) call calendars for a modest win right now in the Easy Trade Button. JPM is up 50% from the lows in October – not a 100% tech gain but still pretty solid.

Stocks besides Tech can rally. What made JPM look so enticing?

Ultra Low IV

Very early on in my trading career, a partner at my firm told me, “you can pick the position, if I can pick the price.” As a retail trader, price matters since we can pick entry points. The less work the option has to do, the easier it is to make money buying it.

The exception, of course, is the ripping stock that launches 5 standard deviations. You just have to be right on the timing.

If you buy cheap enough vol for a long enough period, you don’t need to be as right on timing. Below is a 1 year chart of JPM with 90 day realized vol in purple. Option prices 60 days out are trading at multi-year lows in yellow.