Yo, Pit Crazies,

Right now we have no reason to rally and no reason to crash. 

The rate hikes are set and Congress keeps spending money like it is not getting the message.

In short, more of the same.

That more of the same is a low of 3,500 SPX and a high of 4100 for the foreseeable future.

I would say the range is less for the next three months, unless there’s a Ukrainian miracle of some sort.

But how can you trade if the range contracts?

Use the Vol Products to Trade a Contracting Range

The general consensus for trading a contracting range in SPX is using an iron condor.

Sounds exotic!

It’s when a trader sells an out-of-the-money call spread and an out-of-the-money put spread – and wins when the implied vol drops.

A product like ProShares Short VIX Short term futures ETF (Ticker: SVXY) can work too and we took a gander at it in my Easy Button session on Monday. The product works best when IV is contracting and the market is not doing much.

SVXY six-month chart with one-day candles, IV on the bottom

SVXY is ideal for long delta strangles right now.

That is something we will explore in my classes throughout the week.

In the meantime join Mark live today to see how he’s crushed 14 wins in 17 closes – and get an exclusive trade for showing up.

To Your Trading Success,

AG