One of my Longshot List is catching a bid

Andrew Giovinazzi

BY ANDREW GIOVINAZZI

September 25, 2024

Yo Pit Crazies,

You want to see where the institutions jump into stocks? Jump into our little show tonight first!

Yesterday I remarked in my OP Newsletter that I did not see VIX futures moving down to the VIX cash into the is cycle. The futures would stay higher in the short and VIX cash will rise to meet it. That is starting to happen as VIX Oct futures were unchanged but the VIX index was down .30. I expect this week to ring in a low VIX but I don’t think it will do much for my VIX puts.

Traders are just waiting for the VIX index to pick up the election volatility. It will happen next week. I will likely roll to post-election VIX puts. With VIX where it is around mid-15 i expected my VIX puts to be around $1.00 higher at the 19 strike and 10 deltas from that all the way down to 15.

If you are looking for something now, individual names are where it’s at. I posted a list of Longshot stocks last Wednesday for folks who came to my preso and one of them is starting to catch fire.

What Longshot Winner is this?

So does this have the telltale fingerprints?

Let’s see!

This footprint is like Bigfoot

Institutions were the ones who pushed long term options over 30 years ago when I was starting out. Today they are using FLEX options in lieu of OTC counterparty risk too. What I like to see is big institutional volume. That is some big call buying institutional volume.

The bad news is I wanted to buy the U Jul2025 25 calls for $2.00 last week when I was running my Longshot Watchlist for the Flash 10. Today those calls are $4.50.

I have a couple of stocks heating up from my Longshot List so things could move a bit faster than I was planning.

Good problems to have when the flow is piling in, I want to pay attention.

See you tonight.

To Your Trading Success,