BY ANDREW GIOVINAZZI
May 24, 2024
Yo Pit Crazies,
What I wrote for a headline is true. VIX rallied to a week high yesterday but that high is only 13.06. Nvidia Corp (Ticker: NVDA) seems to be the only stock with hypergrowth and every other stock in the market can’t get off the mat after a nice morning rally on the growth of AI. Heck the Invesco QQQ Trust (Ticker: QQQ) opened up over 1% on the back of NVDA earnings.
5 day NVDA chart with 1 min candles
That opening did not hold from the get go.
One day QQQ chart with 1 min candles
Everyone has their own way of trading and a lot of students made some dough on NVDA going up.
I just chose a different way to do it.
Two Way Trades just want the market to move
Option trading needs two things:
An Opinion
An Edge
An opinion is easy to define, everyone has one like a belly button. Mine was NVDA will move QQQ more than the S&P 500 Trust ETF (Ticker: SPY). So I bought some QQQ strangles, calls and puts, or relatively short duration for my two way trading strategy. Not 30 days as usually more like 20.
The next is the edge and I had that both in the realized move and the relative position of the VIX futures. If those phrases are like ancient runes to you, join Weekly Profit Cycles and find out..the last mile is closing, so I closed the QQQ calls in the morning and the QQQ put near the end of the day.
Now I ride the VIX puts or sell them and take profits. I did not have to care how QQQ opened I just needed to make sure it moved.
Ain’t life grand. Join Weekly Profits Cycles and learn how to make G’s for yourself.
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