BY ANDREW GIOVINAZZI
May 29, 2024
Yo Pit Crazies,
Check out Option Pit University. It is my goal to make OPU the best option education platform on the planet. It will only get better.
The Market Vectors Semiconductor ETF (Ticker: SMH) is on a one way train to supernova status. Thanks to Nvidia Corp (Ticker: NVDA) taking over the world and maintaining a lead in the all important AI chip tech, having a 10 for 1 stock split and running over shorts, SMH created a halo effect around all the other semis.
6 month chart in SMH
Is the run over? Will it ever end? Who knows?
But we can do something about it in the Trading Desk.
Momentum is a tradable thing
We trade a lot of strangles in the Trading Desk. The reason why is because they work when the conditions are right. There might not always be the same stock that works, but there usually is a stock with a condition that makes sense. On any given day, there is a stock that makes a great strangle and then let the movie play.
Just don’t forget to close the winning side.
The broad market is stuck waiting for the little trial of a former President in Manhattan. Names and the future of tech can grab all the money in the meantime. Think of it as water flowing into a small space at a high rate of speed. That space will fill quickly and soon overflow.
That is the trade we will look at in the Trading Desk in SMH.
See you then.
To Your Trading Success,
-AG
Andrew Giovinazzi
30-Year Trading Pro
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