BY ANDREW GIOVINAZZI
March 6, 2024
Yo Pit Crazies,
Speaking of crazy things I remember, in the early 2000’s there was an Anti-Globalist protest group outside of the PSE.
I guess our little option floor was a bastion of capitalist evil.
It seems these protest groups find a new thing to protest every couple of years but I digress.
Back then, Anti-Globalism was the rage.
The Trustafarians stormed up the stairs of the second floor P-coast entrance in the Mills Building and, crazy as it sounds, jumped the turnstiles and tried to disrupt floor business.
Well that did not work so well. You see there was a 1 inch thick plexiglass panic door that shut instantly when Dave, our trusty security guard, locked in the protestors.
It was 8 or so that got through to a floor with 500 people on it.
After about 2 sec they realized their mistake and tried to get out not before getting a fair pounding and attitude readjustment.
Doors opened and they were “tossed” out. Now people block traffic on highways.
The only thing that stays the same is change.
But hot stocks like to do hot stock things and keep exploding up.
Same as the 80’s when I started, 90’s 2000’s, 2010s and on to 2024.
5 decades of option trading. Below is a snap of the Edge Hunter Moving sheet.
Some alarm bells are going off for this one.
Super Micro Computer Inc (Ticker: SMCI) is going to split
Now I don’t know if it is going to split, but it is going to split.That 5 decades of slinging options has my spidey senses tingling. $300 to $1100 in 3 months. Same thing happened to Tesla Inc (Ticker: TSLA) a few years ago. My guess is that it is a 10 to 1 split. SMCI will probably be up $150 on that news.
SMCI 3 month chart with 1 day candles
The Edge Hunter Sheet below shows momentum on the left and relative implied volatility on the right. Option premiums are trading at 1 year highs except the stock is moving more.
I cannot touch an option contract for under $20 or $2000 in premium. The duration for the split is problematic. This is one time I will just buy a couple of shares and wait for the split announcement. This is total spec but that is the way I would trade. It.
Because crazy stocks are crazy stocks and that doesn’t change..
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