BY ANDREW GIOVINAZZI
October 27, 2024
Yo Pit Crazies,
Why is a special situation interesting? Because when the regular model assumptions are thwarted, option prices can change very quickly. That means more opportunities and better returns for traders like us.
This week we have a confluence of events:
- This is the last full week before the election
- The Fed works rates on Nov07
- Volatility Risk Premium (VRP) is at year high levels
- Most of Big Tech reports, Bitcoin stocks and lots of Big Industrial
- Israel is retaliating against Iran
I think the market is not pricing the action correctly. This is very similar to the Double Double set up I had for Testa Inc (Ticker: TSLA) last week in the Trading Desk.
If you want to see how to play this, do so here.
The Nov8 cycle in SPY is down to $16
Recall what is going on in the S&P 500 Trust ETF (Ticker: SPY) this week-
- This is the last full week before the election
- The Fed works rates on Nov07
- Volatility Risk Premium (VRP) is at year high levels
- Most of Big Tech reports, Bitcoin stocks and lots of Big Industrial
- Israel is retaliating against Iran
Anyone of those items would alone move SPY $16. We have 5 items and we have 10 trading days.
Mark and I go live on the 30th to discuss this very issue. The situation is… special. The trades will be too.
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
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