BY ANDREW GIOVINAZZI
February 20, 2025
Yo Pit Crazies,
Semi-Conductors, D.O.G.E. and Bitcoin have been getting all of the highlights lately but an old timey sector is making some big coin.
Right now we are waiting for Nvidia Corp (Ticker: NVDA) earnings.
My D.O.G.E/ Tesla Inc (Ticker: TSLA) idea was pretty nice as TSLA has found a recent bottom.
I think Bitcoin is getting replaced by gold but more on that this week.
This stock below is indicative of the sector I am talking about.
Let’s peel back the curtain and see what it is.
This stock is Devon Energy Inc (Ticker: DVN)
Most of the energy companies, as in oil and gas, have put up great numbers. In a market with big valuations, reasonable ones will attract attention. Note below that IVs have not gone back to lower levels. Traders did not rush to exit long call positions today.
DVN 1 year chart with 60 and 30 day IV
I find it more than curious that the option volatility has stayed elevated in DVN. After strong earnings in the sector we will see some higher numbers from this group. I am holding an oil and gas name in Flash 5 and Trading Desk so I would be quite happy to see the trend continue.
DVN should see the low 40s.
To Your Trading Success,
AG
Andrew Giovinazzi
30-Year Trading Pro
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