Looking for New Opportunities on a flat day

BY ANDREW GIOVINAZZI

September 5, 2024

Yo Pit Crazies,

Volatility is flying! Where can you learn to trade it? Well right here.

Well I guess stocks really did not want to sell off too badly if SPX could only manage a -8.86 day with VIX closing above 21%. If you want confirmation this was a market waiting for economic data, Look no further than this.

But while we wait for the next recession, or not, it might be better to look at what stocks did ok today. In most of my products I dumped VIX call spreads and SPDR S&P 500 Trust (Ticker: SPY) put spreads this week. Some great prices, some ok prices. I expect VIX to recede by the end of the but ultimately you never know. That would make it a very nice week

With the broad market sitting I start to go through my equity list and see what is happening. This stock below had quite a candle today and it is one of Frank’s favorites in our Cap Gains list and it is springing back to life.

1 year chart of a mystery stock

Now that you are interested I do like stocks that have a healthy bounce off

the bottom that is sustained.

Let’s take a look.

MP Materials Corp is what it is

Rare earth materials are, well, rare. Frank knows a little bit about this area and this is one of the better players and maybe the only rare earth miner in the USA. i have to check with him again but as all mining companies go, there are ups and downs and USGOV making this difficult. It is one thing to use rare earth materials in the Green Boom but apparently companies are not allowed to mine them. A perverse issue that of course makes the materials even more expensive and… rare.

There were call buyers making money roughly doubling in value on the MP Oct13 15 calls. Nothing like OTM call buyers making some dough to make folks happy.

I got put shares at a higher price, just above 16.6 and I can almost write calls again but something here tells me to wait. I will likely work the MP Oct18 15/17.5 1 x 2 call spread if I can for small dollars. Anyway I will keep an eye on the upside calls to see if the buyers are still hungry.

Volatility will be moving again! Where can you learn to trade it? Well right here.

To Your Trading Success,