BY MARK SEBASTIAN
June 28, 2024
Ahead of a very short week because of the 4th of July Holiday…PCE was released…
This is allegedly the feds preferred form of measuring inflation…
Given the market is borderline obsessed with the FOMC’s will they wont theyon rate cuts.
One would think that the market would be juiced for PCE…
It isn’t:
Implied volatility is low…realized volatility is even lower…
The June 28 straddle?
Not even 28 dollars as the debate wrapped up.
That is incredible…
With this market so disjointed…the QQQ is strong on the back of mag 7 rotation (Ill talk about that soon)…the S&P 500 is flat…mostly because…the rest of the market stinks…look at the Dow Jones…its down month over month!
Next week, on a shortened day the US Gov releases non farm payrolls.
Yes it is a short week…but take a look at the cost of buying premo into next Friday:
60 dollars!…yes…that would have been a huge loser this last week (thus far)…but that doesnt mean its not a good buy.
So what would I do?
Id go out 2 weeks to July 12:
Earnings season starts and the straddle is 90 bucks…about 1.7%….that is for a PCE, a Non Farm, and some bank earnings…
If I lose on this though…I know Ill win on 0 DTE.
0 DTE does exceptionally well during periods of low volatiltiy…Its a major part of what goes into our Double Down Meter.
On Thursday I scored a 113% winner in about an hour…not bad…you can join me click here or call my team 888 872 3301
Your Only Option,
Mark Sebastian
Mark Sebastian
Founder & CEO, Option Pit
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CAPITOL GAINS: SMR Aug16 7 call closed for a 150% gain
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