BY ANDREW GIOVINAZZI
April 10, 2024
Yo Pit Crazies,
If you missed Mark’s preso last night on the impending collapse in UVXY, check it out here.
I waited all day for a fill in the Trading Desk. I bought an S&P 500 Trust (Ticker: SPY) Apr12 517 call and 515 put strangle for $6.15. The trade is below:
4.9.24 11:47 AM – Buy to open 1 SPY Apr12 515/517 Strangle pay $6.10 maximum $6.20 (1 APR12 515 P/1 APR12 517 C) #179 I tried to add the SPY strangle this am but I missed my fill in class.
There is a little known fact I put on all the trades I send out. I filled into the later part of the trading day and I hope to sell this strangle for $10.00.
SPY 3 Month chart
The bigger question is what makes me think I can get $10 for this thing?
Here is an answer
This market is in a wicked up trend
In case you have not noticed, stocks are going up. Regardless of what you think about Joe Biden, Congress, the Federal Debt, DJT or any of the other myriad issues, stocks go up. At some point they won’t, but for now stocks are jumping. Maybe this CPI number will pull things down but I doubt it.
Those big candles, $10 or more, is a harbinger of how easy it is for stocks to move. The fact there is a major event in the CPI caused by the Fed messing up is no less of a reason for larger moves. If anything, that makes the likelihood of a big move more likely. A number that is just expected in CPI will catapult the market to 525 and I should get my $10 or close to it.
We will know today. Join the Trading Desk to get Mark’s UVXY trade and the mess of good trades we put out every week.
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