BY ANDREW GIOVINAZZI
July 1, 2024
Yo Pit Crazies,
0DTE wracked up a 113% win last week. Take a look while Double Down is still around.
I remember 2010 when Pres Barack Obama would not give up his Blackberry phone. He loved it and the Secret Service was going nuts the POTUS had an unsecured device on his hip. That was the peak for Research in Motion and Apple Inc (Ticker: AAPL) introduced the iPhone and that was it. Management did not pivot fast enough.
On Friday morning I had to get some fast closes out for Weekly Profit Cycles. Some calls we up around 70% and I had to get so stops out for the folks who follow my system. The S&P 500 Trust (Ticker: SPY) had peaked and I did not want to give the profits away. I needed to manage the trade. The timing was good as SPY dropped 1% from there.
Below is a chart of what used to be one of my favorite companies to trade. Since the merger it has fallen on hard times as, unthinkable, it cannot make money in big cities anymore. A retail business that needs lots of people can no longer make money in a Big City with lots of people.
Besides the social ramifications of the policy disasters this is crushing retail businesses. Either way the management has been asleep at the wheel. Massive footprint companies losing 80%
What is this stock and will it turn around?
This turkey stock is WalgreensBoots Alliance (Ticker: WBA)
I lived in San Francisco off and on for 15 years and Walgreens Drug Stores were on every corner. Apparently when cities don’t prosecute theft that is a competitive disadvantage as most of the inventory is under plexiglass now. Another reason for the rise in Amazon.com (Ticker: AMZN) is the strength in e-tail and Walmart (Ticker: WMT) is catching up fast.
What used to be a tidy store is now an unkept mess apparently. The Walgreens in town here in Maine is still nice but the Big City problems are not going away anytime soon, Competition from online pharmacy firms is hurting too. Either way, this is a problem when management does not pay attention to the core business.
Will it turn around? Maybe but there is no serious effort yet to turn the tide. WBA market cap is only $10 billion dollars on a company with $150 billion in sales. That is crazy. While I am not adding any shares yet, this might make a good option position rescue play so I will look at it this coming week.
At Option Pit we go great lengths to work through the management of a position. The win only counts when it is closed.
Mark’s new Double Down 0DTE opens and closes them. If you want short term action, this is the place.
To Your Trading Success,
AG
Andrew Giovinazzi
30-Year Trading Pro
See what's hot at option pit
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
Events make the liquidity providers raise prices for the same amount of time
How do I know this? I was one for 15 years, Mark 10 years and Licia for 15 years. That is 40 years and 20 million option contracts. Also, players will wait to place trades while an event is in play. Traders would rather ride a sure wave than place a big bet prior.
The liquidity provider will just pump up the volatility in the options to overcome the daily decay. Trade 1 Greek for another, Theta and Vega. That is just time for volatility.
Look for my Greek Exposition in Option Pit University coming soon.
If the PCE number is just in line post-debate, SPX will fly as the market is waiting for a reason to go higher. Hard to imagine there will be any surprise from the two candidates but that is why the VIX has a bid!
To Your Trading Success,
AG
The Gulf of Maine and the shoreline offer 1000s of fishing spots. An almost unlimited supply of places to go. Right now the stock market, with 1000’s of names to trade, has only one place to go.
That stock is Nvidia Inc. (Ticker: NVDA). On a low volume Tuesday in the June heat, NVDA managed a day where the fund manager had a chance to buy the stock not at all time highs. So they all jumped in and the performance lifted all high quality tech.
Yo Pit Crazies,
It is Voz Free Friday this week. Check out Voz and Mark as the dynamic duo of trading on the close every day in Trade to Close.
My close Tuesday was a bit different, a buddy wanted to go Striper fishing so I did this: