BY ANDREW GIOVINAZZI
November 29, 2024
Now that everyone has digested large meals and we sit around Friday morning to watch the least exciting half day there is in trading. I just want to remind everyone that there are AI stocks that are relatively cheap. While folks are chasing Microstrategy Inc (Ticker: MSTR) for bitcoin riches there are lots of other stocks that can go up too.
Exhibit A is below.
Secret AI Stock with 90 day realized volatility and 30 day IV
There are two charts in one to learn to read here to see why this looks like an opportunity.
We are going to do it
International Business Machines Inc (Ticker: IBM) is the stock
I have bought shares and options in IBM for the last two years. One reason is because Frank said it was a cheap AI stock and the second reason is that the implied volatilities (IV) were so low. When I look at the purple line for 90 day realized volatility, IBM can move. Since it is not Bitcoin, no one wants to buy the options.
That is what makes it an opportunity. The red line is 30 day IV and it is very cheap. IV in the teens for stocks that move 1.5% per day on average is a good bet.
It might make the Theta 2 side of our trades next week.
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
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