BY ANDREW GIOVINAZZI
July 8, 2024
Yo Pit Crazies,
Don’t forget the conference is in 2 weeks. Claim your voucher here.
Yes it was a quiet week for the most part. The FOMC came out with their usual bag of tricks and they are not lowering rates anytime soon. Once again that was enough to get traders moving and buying stocks on Friday after the FOMC notes came out after the close.
I have said it here many times and will say it again, rates won’t go down until the crazy USGOV spend comes down. Record US GOV tax receipts don’t matter with record spending.
Mark and I managed to come up with two trades. One in the Proshares Ultra Short term VIX futures ETF (Ticker: UVXY) and one in Block Inc (Ticker: SQ).
SQ 30 day chart
Our two trades and my thoughts going into the huge earnings cycle at the end of the month.
SQ call spreads and UVXY strangles
There was a lot of call buying in SQ last week.
Mark and I like the SQ Jul12 65/69 call vertical spread for $1.00 or less.
With UVXY coming in close to $15 by August expiration due to decay, we liked the UVXY Aug16 20 puts and Aug16 23/33 call spread for $2.35 total for the package. This is a way to play the upcoming earnings cycle in late July.
I figure we trade to $500 QQQ into earnings at the end of July, if they are good we keep going and if they are bad, look out below.
Until then stocks likely coast, which should keep UVXY low and making new lows.
To Your Trading Success,
AG
Andrew Giovinazzi
30-Year Trading Pro
See what's hot at option pit
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