BY ANDREW GIOVINAZZI
November 7, 2024
Yo Pit Crazies,
As we settle into 4 more years of DJT in the comeback of the decade I am reminded of my partner in Cap Gains, Frank Gregory. His pre-election forecasts were great.
Winners for Trump- Crypto, Banks and Oil
Now I have to admit I did not get the banks. But Frank got the banks. He also thought healthcare stocks would not fare well under a DJT and possibly RJK Jr regime. He was right as the market ripped Wednesday and the SPDR Select Healthcare ETF (Ticker: XLV) was only up .34. Pretty light in a market up 2.5% SPX and the best day for the broad market in years.
The problem was I bought an XLV strangle and it is likely not going to pay.
On the other hand JPMorgan Chase Corp (Ticker; JPM) did this:
10%!!!
That reminded me of an option buying axiom.
If you want action, but juice in individual names, not ETFs
Buying juice is just buying options. I had some call spread queued up on Tuesday in JPM but went with ExxonMobil Corp (Ticker: XOM) instead. XOM strangles are up about 10% as oil stock could move a bit. Even a Halliburton Corp (Ticker: HAL) trade I had on paid.
I went with the XLV strangle because it was relatively cheap and the weightloss names were soft lately. The reality is, single names move better than ETFs most of the time. Well Frank was at a meeting in the Pentagon so I hope that went well. I hope he brings back some good ideas.
This is a drone stock Frank likes, I added to my IRA in the teens this year:
KTOS 1 year chart
Kratos Defense and Security Solutions (Ticker: KTOS) is a drone tech company an area Frank knows a bit about. Big demand for drones.
I need to do a better job of making option trades out of his ideas. Wall Street meets K-Street will be back on the beat!
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
PFE May17 26 calls closed for a 66% win
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OPTION SHOPPER: ERX Mar28 65 calls closed for a 90% gain