BY ANDREW GIOVINAZZI
February 16, 2024
Yo Pit Crazies,
Have you been trading in the Danger Zone and would like to get into the Trade Zone? Take a look here at Mark’s blockbuster new trading product.
I have to admit I had to do a double take today looking at the ARM Holdings Inc (Ticker: ARM) on the 5 day chart. I was sure the stock moved close to $10 from the Trading Desk time where I picked up a cheap call butterfly for $1.80. That fly was up 40% on the close which is good.
The reason the move looked so small was because earlier in the week ARM had a $100 range in a day. Oy!!!!
ARM 5 day chart
On the one day chart the $10 range was a little easier to see. I am sure after the Applied Materials Inc (Ticker: AMAT) hits the tape, ARM will fly a little higher.
ARM 1 day chart
$100 ranges and $10 ranges what is a trader to do. That is the market we have.
I have a few ideas.
Small dollars can turn into Big Dollars on Big Moves
The problem is where do I find a small dollar in a $130 stock with 145% volatility? All the dollars are uuuuggge. That is why I bought the $140/160/180 butterfly for 1.80. That fly could be worth 5x what I paid for it without too much trouble from a stock that is moving $10 or more a day.
That in a nutshell is the Trade Zone. Pick the right trade for the Mega Cap madness that is gripping the market. Ride a Mega Trend but do it on a tighter dollar. You will thank me for it later.
To Your Trading Success,
-AG
Andrew Giovinazzi
30-Year Trading Pro
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