Yo Pit Crazies,
Nvidia Corp (Ticker: NVDA) had a down day yesterday only to be up $20 today.
MongoDB Inc (Ticker: MDB) is up $60 after shredding their earnings numbers after hours on Thursday.
Some companies somewhere are selling the stuff people want.
The Invesco QQQ Trust (Ticker: QQQ) still out performed SPX. DJI squeaked out a .47% gain.
Still another high for 2023 in the QQQ, as the market is totally comfortable with the current valuation. It can stay that way for a long time.
However, VIX has something to say about it.
VIX at Year Lows, SPX at Year Highs
One thing folks don’t realize is that VIX hasn’t been in the bottom quartile (Zone 1) in 3 years. There’s a whole generation of new investors that don’t believe VIX can go below 14 – or to 12 for that matter.
To see that, two things have to happen:
- Realized Vol has to go to single digits in SPX
- Fed game has to be over
Part 2 of the grand plan is coming to pass – the Fed will likely not raise in June. Many of the things that caused inflation in the first place are subsiding, namely mandates, massive government spending, and energy crunch.
I think the earnings rips will continue, and some stock reporting good news will outperform since folks have been betting on recession. So far that has been the wrong bet.
Cheap VIX puts in the 16 and 15 handle might actually be worth something by the 4th of July.
Those little lotto tickets might be as valuable on a percent basis than some of the crazy earnings rips we see.
The Rundown
Win the Week
First Solar Inc (Ticker: FSLR) Jun16 207.5/210 call vertical spread closed for a 21% gain
OP Mentoring
VIX, SPDR S&P 500 Trust (Ticker: SPY) Jun09/May23/Jun21 420 call calendar, 405 put, 18 put closed for a 8% gain
Trading Desk
SPY, VIX May26/Jun21 419/423 call vertical spread closed for a 6% gain
iPath S&P 500 VIX futures short term ETN (Ticker: VXX), SPY Jun16 34 puts, 410/400/390 put butterfly closed for a 24% gain
Big Money Flow
Intel Corp (Ticker: INTC) Jun16 30 calls closed for a 58% gain
Nitro Trader
Alphabet Inc (Ticker: GOOGL), International Business Machines Corp (Ticker: IBM) Jun30 120/115 put vertical spread, 128 calls closed for a 34% gain
To Your Trading Success,
AG