BY ANDREW GIOVINAZZI
June 21, 2024
Yo Pit Crazies,
Mark and Hannah went live Thursday in a humdinger of a discovery. Click and find out the secrets of double down in a bull market. Double Down in 0DTE is here.
Did you know that the Invesco QQQ Trust (Ticker: QQQ) is up 10% over the last 30 days? 10% over the last 20 days actually and showing very little sign of giving up the trip to $500 that I think is the obvious big target.
The first question is don’t ask why the market is where it is. It is here today and will be in a new place tomorrow. Liquidity and flow make up most of how the market operates. 401k and pension plans have steady buyers every month. Right now what we have is what I learned a long time ago, willing sellers. Funds are ready to part with shares at higher prices. The market will find that liquidity and go higher.
QQQ 30 day chart
That brings us to the bull market cycle we are in dating from Oct 2022.
How high can it go?
In 1999, QQQ ran 80% in one year
This was after a 7 year bull market starting in 1992. The term path dependency means the option trade cares where the market is going. I think we are still going up since there is nothing that knocks stocks down for more than a half a day or two. If something knocks the QQQ off of its pedestal that would create a larger market event.
That gives me an asymmetric trade. Lean long QQQ with a cheap junk VIX call to hedge. That will give me a longer hold time and I want to try for 500 QQQ.
I bought some QQQ Jul 19 500 calls for just over $2.00. Those same calls traded up to $3.60 on Thursday. That is a pretty big jump for one day in calls $14 OTM. That means the IV gets pumping in rallies as momentum buyers come in. I am buying junk VIX July 17 15 calls.
This should bode well for trend in 0DTE. Trade the condition that is in front of you.
To Your Trading Success,
-AG
Andrew Giovinazzi
30-Year Trading Pro
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CAPITOL GAINS: SMR Aug16 7 call closed for a 150% gain
DELTA STRIKE: VLY Mar15 8 puts closed for a 88% gain
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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