BY ANDREW GIOVINAZZI
October 2nd, 2025
Yo Pit Crazies,
The broad market isn’t moving, and the VIX futures are climbing higher
Normally, volatility up and stocks up is a bad recipe. Here’s why: when traders feel confident, they’ll sell options because that’s where the easy money is. It’s much easier to sell an option that’s 10% out of the money, bag that premium, and move on than to buy a call or put and get the direction 100% right.
While the market’s not moving, some stocks are doing very well.
The Trump Effect
Lately, the Trump administration’s done equity-for-cash swaps with three major companies: MP Materials (MP) for rare earth minerals, Lithium Americas (LAC) for lithium production, and Intel (INTC) for semiconductors.
But a different stock just had a huge day.
According to Mining.com, USA Rare Earth (USAR) recently spent $100 million for a UK based metal alloy producer. It’s now a vertically integrated magnet producer. It now owns the mines, production, and distribution. That’s a key component in almost everything: drones, computer chips, fighter jets, cell phones, cars, everything.
Trump wants to bring manufacturing back to the U.S., and he’s lighting the fires to get that done.
Rare Earth had huge short interest. And that can make a stock pop when traders have to cover.
I had a nice trade in USAR for a 40% gain and still hold some call spreads with a 100% gain.
What this means
The Trump agenda’s still moving forward.
Key industrial areas that need production kick-started, faster approval, and rolled-back regulations are front and center.
I expect USA Rare Earth to do something similar to MP Materials as they supply rare earth magnets for U.S. manufacturers.
To Your Trading Success,
AG