BY MARK SEBASTIAN
August 22nd, 2025
Dear Money–Maker, Mark here.
Powell delivered.
The Russell 2000 responded with a 3.8% monster move. The Dow hit an all-time record.
And if you recall yesterday, I told you SPX straddles at $57-$59 were dirt cheap. I hope you made a play on it.
Today’s volatility explosion just proved why.
The Double Vindication
While everyone was obsessing over mega-cap tech, I was calling two plays:
- Russell 2000 leadership (3.8% explosion today)
- SPX straddles under $60 (massive volatility underpricing)
Both hit. Hard.
The Setup Was Mathematical
Before Powell opened his mouth at Jackson Hole:
- QQQ: +20% this year
- S&P 500: +15%
- Russell 2000: +8%
- SPX straddles: Criminally underpriced
Small-caps were the neglected stepchild. Volatility was getting no respect. Both were about to explode.
The Explosion
IWM ripped 3.8% today. Russell is now knocking on the door of all-time highs.
Those $57-$59 SPX straddles? They paid out beautifully on today’s massive directional move.
Fed rate cut odds spiked to 90% for September. The cutting cycle is here. And small-caps benefit most from every single cut.
This isn’t luck. This is seeing what others miss.
The Continuation Play
During my livestream, I called out these potential plays:
IWM September 12th $225 calls – $10 bid
Playing the breakout with in-the-money exposure.
TNA September 5th $41 calls – $1.90
Triple-leveraged Russell exposure for maximum juice.
VIX September 29th $13 puts – $0.65
Buying VIX puts is one of the biggest no-brainers out there. The VIX is gonna be sub 13 next week, folks.
The Russell’s 3.8% move today was the appetizer. September rate cuts are the main course.
Your Last Chance
Yesterday’s SPX straddle call delivered. Today’s Russell explosion delivered.
Monday’s continuation plays are right in front of you.
Most traders are still debating if today’s move was “real.” Smart money is positioning for what comes next.
You can join them. Or watch the Russell hit new highs without you.
But decide fast. This train is leaving the station.
Your Only Option,
Mark Sebastian
P.S. We’ll be live again on Monday, have a great weekend!