BY ANDREW GIOVINAZZI
April 4th, 2025
Yo Pit Crazies,
VIX trades 40! That is what happens when China does not bend the knee to tariffs. To add fuel to the fire, Fed Chair Jerome Powell says there will be no ‘Fed Put’ in the short term. That really got folks unhappy. And VIX trades 40!
VIX 6 month chart with 1 day candles
On the flip side, interest rates are at their lowest levels of the year. Vietnam has announced plans to open up its markets, and stocks are still holding above the August lows. So, things may seem grim, but are they really? Stocks that were once highly priced have now returned to more reasonable levels—it’s not such a bad thing. In fact, there are plenty of other stocks out there that are looking like great deals.
A trader is buying some, 100,000 Sep25 102 calls. That’s a big-money trade, and I’m curious if they’ll perform as well as Mark did with his 342% home run.
A 40 VIX is rare, so this weekend could be significant.
It may have something to do with the iShares Barclays 7-10 Year US Government Bond Fund (Ticker: IEF)….
The Donald is doing what he said he wanted to do
Love him or hate him, President Trump wanted fair trade, D.O.G.E and lower interest rates – and so far he’s pushing that agenda. He also did not mind if the stock market sold off in the meantime. While President Trump talks a lot, his actions usually speak louder. Those actions are leading to lower rates, and next week, Frank and I will dive into that topic. The fact Big Money is pouring into long bond ETF’s is not a surprise.
I am following the money, and right now, that is bonds up and stocks down.
I’ve been picking up shares through the Andrew Nibble program, adding more oil, social media, and biotech stocks this past Friday afternoon. The strategy is to buy when you can, not when you have to. I’m also adding more long bond options to my portfolio.
To Your Trading Success,
AG
Andrew Giovinazzi
30-Year Trading Pro
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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
VIX 30 Day Chart