BY ANDREW GIOVINAZZI
August 1, 2024
Yo Pit Crazies,
We are having our VXX special on Friday. Mark and I will discuss the split and what it means for traders who want to make some money trading the Volatility Products.
Finally a Mega Cap tech that delivered something perfect. Meta Inc (Ticker: META) of all stocks. The old social network must be using AI the right way because they left Pinterest Inc (Ticker: PINS) in the dust.
The silver lining in all this is that META Platforms is spending on AI. Microsoft Corp (Ticker: MSFT) is spending on AI with a CAPEX of 90 billion dollars this year. My sense here is that Big Tech does not want to go down a whole lot more than it has already done.
If Big Tech is tired of going down, where does that leave the Volatility Products?
After all, a lot of the current selloff is from the Invesco QQQ Trust (Ticker: QQQ) dropping 10% from the highs. It would appear the sentiment is starting to shift especially after the FOMC minutes and Fed Chairman JPowell held the line for the 20 Fed Meeting in a row.
SPX is 2% from the highs and VIX is over 16%.
Something is not adding up
VIX should not be 16% with SPX 2% from all time highs
I think this is the best VIX selling opportunity of the year. Many stocks out of the Great 8 have performed well through this earnings cycle. There was some Geopolitical Risk on the docket with Israel and Iran but that fizzled 2 months ago and it will likely fizzle again.
The Barclays Ipath Series B Short Term VIX futures ETN (Ticker: VXX) just reverse split and this is typically a great trading opportunity.
VXX 1 month chart
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
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