BY ANDREW GIOVINAZZI
December 5, 2024
Yo Pit Crazies,
When I launched my Option Fingerprint program little did I know it would go so well so fast. The idea of accumulating option volume might be new to some folks but it is not new to me watching the first Long Term Equity Anticipation Securities (LEAPS) get listed in 1990. Institutions wanted long term expirations to buy options so they can buy em and hold em.
Unlike stock volume, option open interest hangs around for a long time and most institutions trading LEAPS are on the buy side for the reason I described above. That leaves a “fingerprint” sometimes for years as the options gain value. This is something I can see everyday and watch it grow.
Block Inc (Ticker: SQ) is one of my quasi bitcoin picks. Similar to RobinHood Markets Inc (Ticker: HOOD) which has embraced crypto trading rather early and is back in vogue again. SQ is a payment processor using a crypto wallet. I bought SQ shares in the mid $60 range and two months later it is going to trade $100. I am two dollars away. My big mistake for Flash10 was closing HOOD at the target, if you can call that a mistake.
1 year SQ chart with BOT spot
With the new DJT administration going all in on Crypto, stocks got kicked into high gear. Stocks like SQ are feeling the sunshine early. It also was a $260 stock 3 years ago.
So is it time to double dip?
Take short term positions around a long term trend
When a stock looks like it wants to go up and implied volatility is super cheap, note below, I call that an opportunity. Riding some cheap options into the end of the year is not a bad idea and this bitcoin thing is not losing steam until the inauguration when some policy might become more clear. A buy the rumor, sell the news moment.
1 year SQ chart with 30 day IV on the bottom
My target for SQ was $100 for 6 months but now I am making it $125. Still cheap in bitcoin land. Short term options are super cheap with SQ running $5 on Wednesday.
If you want to find more cheap options do so here.
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
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