BY ANDREW GIOVINAZZI
July 4, 2024
Yo Pit Crazies,
Most of you who read my OP Newsletter knows I like Tesla Inc (Ticker: TSLA) here. Did you know TSLA has higher revenue than Nvidia Inc (Ticker: NVDA) right now? All those chips have to go somewhere and I can foresee in the not too distant future every car maker on the planet will install full self drive (FSD) technology at some point. How many cameras are in a 2024 vehicle?
That reminds me of Total Recall. TSLA self-driving taxis at your service.
You remember Star Trek with the ‘Communicators” that are now cellphones and created 10 Trillion at least in market cap?
Those movie makers were not too far off. All that stuff is now in the Invesco QQQ Trust (Ticker: QQQ)
Two year chart of the QQQ climbing 100% trough to peak
So where is the QQQ going this week?
$500 but not this week
I closed some QQQ Jul19 500 calls from trades in the Pro room today. Reason being 4 days of decay coming down the pike and VIX and volatility rebid looking for more rally post-FOMC. The announcement was not anything huge or surprising and it happened after the close. Friday morning and NFP numbers come out and I think volatility is bid for that.
We closed at records for QQQ and SPX. Unless the payroll number is a disaster, expect higher. I did add S&P 500 Trust ETF (Ticker: SPY) calls today for the end of month duration in Weekly Profit Cycles. They were all green on the close.
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
Those movie makers were not too far off. All that stuff is now in the Invesco QQQ Trust (Ticker: QQQ)
You remember Star Trek with the ‘Communicators” that are now cellphones and created 10 Trillion at least in market cap?
Events make the liquidity providers raise prices for the same amount of time
How do I know this? I was one for 15 years, Mark 10 years and Licia for 15 years. That is 40 years and 20 million option contracts. Also, players will wait to place trades while an event is in play. Traders would rather ride a sure wave than place a big bet prior.
The liquidity provider will just pump up the volatility in the options to overcome the daily decay. Trade 1 Greek for another, Theta and Vega. That is just time for volatility.
Look for my Greek Exposition in Option Pit University coming soon.
If the PCE number is just in line post-debate, SPX will fly as the market is waiting for a reason to go higher. Hard to imagine there will be any surprise from the two candidates but that is why the VIX has a bid!
To Your Trading Success,
AG
The Gulf of Maine and the shoreline offer 1000s of fishing spots. An almost unlimited supply of places to go. Right now the stock market, with 1000’s of names to trade, has only one place to go.
That stock is Nvidia Inc. (Ticker: NVDA). On a low volume Tuesday in the June heat, NVDA managed a day where the fund manager had a chance to buy the stock not at all time highs. So they all jumped in and the performance lifted all high quality tech.
Yo Pit Crazies,
It is Voz Free Friday this week. Check out Voz and Mark as the dynamic duo of trading on the close every day in Trade to Close.
My close Tuesday was a bit different, a buddy wanted to go Striper fishing so I did this: