Hey Trader,

Yesterday I told you the market makers (the firms that set option prices and take the other side of your trade) would open SpaceX options sky-high. They did. And it set up one of the cleanest premium-selling windows I've seen all year.

I put on four trades. All four are working, and one is doing something that's not supposed to happen.

I sold the 220 July straddle (a trade that sells both a call and a put at the same strike, so you collect premium up front) for $69.

The stock dropped $20: a 10% move.

A short straddle is supposed to bleed on a 10% move. That's the whole trade. You profit when the stock sits still. You get hurt when it moves.

I'm up $12 on it right now. Haven't even closed it.

Here's how that math works: vol crush (when volatility collapses and option prices deflate fast).

I scalped about 25 vol points as they crushed July premium and filled all the retail orders at the higher levels. The vega win (my gain from falling volatility) swamped the gamma loss (my hit from the stock moving). I made money on a directional move that "should have" cost me.

This is the part most retail traders never learn. Option prices don't come from where the stock goes. They come from what people will pay for fear.

When fear collapses, premium collapses with it, no matter which way the underlying (the stock itself) drifts.

Two Cash Machine setups on SpaceX. Both are printing.

All four trades are still on. Implied volatility (the market's price tag on fear) is still elevated. The unwind has more room to run. There's more meat on this bone.

In Turbo Income we did another Cash Machine trade that's also kicking butt.

Want to learn how we do this?

You get a pro market maker who managed nearly a billion dollars and built options strategies to extract income from this exact kind of setup. 15 years on the floor. A decade running income ETFs. Lipper Award. Ivy League MBA.

Boom. I'm here. And I'm doing it live, every week, with members.

The Lesson

If you don't understand how option pricing actually works, you won't trade options well. It's as simple as that. You'll keep buying premium right before it gets vaporized. You'll keep getting filled at retail levels right before the market makers pull the rug.

Yesterday was a textbook case. Anyone who knew what to look for could see it coming.

Hans