End of Quarter Window Dressing
Yo Pit Crazies, The Invesco QQQ Trust (Ticker: QQQ) is up bigly for the year. $260 to $360 is not a bad move for the end of the year. QQQ IV is near the bottom, and things are setting up for a big move into the end of the quarter: QQQ 1 year chart with […]
Market Slows as Powell Eyes Rate Hikes
Yo Pit Crazies, The last ten days have been a perfect example of what happens in a bull market. Stocks can go down, even the ones that were straight up for several months. It’s natural as traders cool on names and start to look at others that aren’t going straight up. Below is a ten […]
Blackrock is All Powerful
Yo Pit Crazies, Blackrock Inc (Ticker: BLK) is one of the biggest and most politically active money managers in the world. So when they get into something, it pays to take notice. This time, they’re getting into Bitcoin. If they’re going to put money into Bitcoin, they’re going to put their substantial lobbying prowess behind […]
VIX a la Mode
Yo Pit Crazies, A few weeks ago, Mark and I talked about the Gamma Bomb. We even gave out a trade idea, and surprise, surprise, it worked out well. In order for the bomb to ignite, VIX had to spend some time at 12. Mark and I thought it was in cards before the 4th […]
AMD Is Not NVDA
Yo Pit Crazies, Every bull market has its favorite stocks. I remember the Dot Com boom had a pretty good list. Eventually, some come back to earth or wait until the earnings catch up – sometimes, they run for years. Right now the darling is Nvidia Corp (Ticker: NVDA), and there is really no equal. […]
Banks Still Not Feeling the Love
Yo Pit Crazies, The secret to trading success is proper positioning. How and why to put on a certain type of trade is all important when it comes to trading options. I have Griff in my ear about the banks, and I was surprised how low the IV was in the KBW Regional Bank ETF […]
The Gamma Bomb – Phase 1
Yo Pit Crazies, Mark Sebastian has been talking about the Gamma Bomb for a while now. One of the conditions is starting to take shape now. We need lots of low volatility, especially in the big indexes and the big names too. Low volatility happens when traders get used to the same thing happening everyday. […]
Single Digit Vol Takes the Weekend
Yo Pit Crazies, Feast your eyes below – all the sigmas, vol per term, are below 10. It’s the first time in three years! IV tends to drop as stocks go higher, especially with all the calculated vols like Sigmas, IV, and IV30. That means vols on the upside should be cheaper due to skew. […]
The Thursday-Friday Trade
Yo Pit Crazies, Yesterday was Thursday and today is Friday. Congratulations Andrew on figuring out what day of the week it is! Lately the Thursday-Friday trade has been an up-up move for stocks. After 2022 all anyone can think of is some hellish selloff back to 3600 SPX. All the folks who bought nothing at […]
Beauty and the Beast
Yo Pit Crazies, J-Pow went for a pause Wednesday. The market yawned a bit as VIX managed to get back to the 13 handle again for 2023. Once again Big Tech led the way with Nvidia Corp (Ticker: NVDA) joining the trillion dollar club on $27 billion in yearly revenue and up $19 today alone. […]