My pick of the year is having a great year, already!

BY ANDREW GIOVINAZZI

January 22, 2025

Yo Pit Crazies,

1 day in and nothing is really surprising yet for the 2nd term of President Donald Trump. It appears he is going down his list of campaign priorities and crossing them off the list. No surprises mean less volatility and that is how the market is responding so far this week. I think this will be a great stock picking year as some animal spirits keep coming to the fore. Heck even the Ishares Barclays 20+ year government bond ETF (Ticker: TLT) rallied today.

Stock picking is fun and one of the best jobs I have here at Option Pit. When I trade options I just use the stock as a vehicle for the option position. I do buy stocks and I sell puts to buy stocks. I do have a system for buying stocks but that is not the only way to do it. Ideas come from everywhere.

Frank has a lot of good ideas. This was a stock he got me into in the teens and it is up near 50% already in 2025 which is nuts.

So what is it and what stocks am I picking in the future?

It is Kratos Defense and Security Corp (Ticker: KTOS)

Now hear me out. Netflix Inc (Ticker: NFLX) is up $100 Tuesday evening. NFLX is now worth more than Walt Disney Corp (Ticker: DIS). It is apparent folks are willing to pay for growth and NFLX is growing. Drones are a way for the USGOV to save a lot of money and still stay at the front of technology.

The growth is there and KTOS moving from $26 to $35 is just the start. I wrote about it on Jan 01, 2025 in this very newsletter. The old line defense contractors just might snap up a small upstart. That is what I am thinking. KTOS is providing the US Government with what it wants now, much like NFLX is giving subscribers what they want now.

There are lots of opportunities out there. Let’s go find some.

To Your Trading Success,