BY ANDREW GIOVINAZZI
December 19, 2023
Yo Pit Crazies,
ODTE class is coming your way on Friday. Learn how to trade them right with Mark and Licia.
Robinhood Market Inc (TIcker: HOOD) optimized everything good and bad during the meme stock craze in 2021. HOOD soared to $80 on the IPO from $38 only for that to be the high tick of the meme stock era. After that it was beset with compliance problems and corporate leadership paying themselves too much in stock compensation.
1 year chart of HOOD with 1 day candles
HOOD does not have 0DTE options but it does have Weeklys. And these were burning hot as traders jumped into buying calls smelling higher prices.
That is not the only thing jumping in HOOD.
Realized Vol is through the roof in HOOD
HOOD has gone from a dead stock to a very alive one. Realized vol, or the close to close vol, is closer to 70% average for the last 30 days. HOOD is no longer trading just for the cash value after the successful IPO. If the country is not plunged into recession and stocks make new highs, a transaction business like HOOD looks pretty good.
I ended adding HOOD to the Easy Trade Button Tuesday since the IVs were relatively low. I have long long dated calls in HOOD to go with my Easy Trade Strangle. Will report next week.
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
HOOD does not have 0DTE options but it does have Weeklys. And these were burning hot as traders jumped into buying calls smelling higher prices.
The VIX future pop was good old supply and demand. Is the VIX call buyer right? Time will tell but my Weekly Profit Cycles strategy does not care because I am always holding market downside protections via VIX calls or SPY puts.
If this market gives you the jitters, take a look at what non-correlated market returns can do for your portfolio.
To Your Trading Success,