BY ANDREW GIOVINAZZI
September 19, 2024
Yo Pit Crazies,
What to learn what makes a good turnaround stock, tune in tonight right before TNF!
In general stocks rally on certainty. The Fed finally decided to cut rates and wouldn’t you know it turned out to be a nothingburger, Be careful what you wish for as the market predicted .5% cut and got it. Now the Fed Funds rate is 5% without anyone in Congress paying attention as they are about to pass the same stupid spending bill they did last year.
Unreal. Stocks were mostly unchanged but VIX took a bit of a pop as the orbiting market lasted for 2 crazy hours.
We had a nice trade in The Ticker Highlight Show last week buying some calls in Portillo’s Inc (Ticker: PTLO). Is it the trade of the century, no but it is still pretty darn good with some Jan calls up 60%. What is even better is the price action.
How do I know about it? Well PTLO is on my list.
PTLO 1 year chart
So let me explain.
PTLO finally had good price action after earnings
I like to see that in a stock after it made 52 week lows. A nice solid, surprising earnings rapport gets folks to notice something is fashionable again. Stocks are like new Gucci loafers, they go in fashion and out of fashion, even though the quality remains the same. I would like to see more volume but somehow the best sandwich place out of Chicago does not have an institutional following yet.
When it does, heck it might get back to $50.
More on tricks and tips picking option trades, try this.
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