There is a simple reason I know how to game market makers for edge. But even more so there is a fatal flaw that can’t be undone and it’s being turbocharged right now! Last week I used it for a 50% gain in 15minutes in $NIO.
Check out secret #2. Time is running out…
Will we ever be normal again?
Sometimes you here people say we are in a ‘new normal.’
I would argue we are always in a new normal because life and the markets are constantly evolving.
That said there are broad strokes between normalcy that tend to stay true and today I’m gonna dive into that today with two unique trades I found that were put on in MASSIVE SIZE.
Markets operating “normally” usually means a VIX in the 12-17 range.
This is why I found two trades that went up on Friday so interesting…
A trader did two separate, yet similar trades, in the VIX options.
The Trader bought about 60,000 (each) of the February and March 21 puts.
The trader then sold about 120,000 of the February and March 17 puts.
This trade is called a ‘bear 1 by 2’
The trade makes money if over the next 4-5 months the VIX eases below 21 and toward 17.
It reaches PEAK P&L if the VIX settles 17 in both February and the March.
Now, do I think that it’s going to hit ‘PEAK’ P&L?… probably not…
But do I think these trades purchased for a small debit of about .85 have a strong chance of winning?
…you bet!
The VIX light is Yellow
Your Only Option,
Mark Sebastian
P.S. – The trade above is my kind of trade and one that we would put on in the Volatility Edge service (albeit probably with a downside hedge for margin purposes). I’m constantly on the look out for this stuff for you guys which is why my latest video on my secret #2 is so important about HOW I do it!