Yesterday Licia bought IBIT calls overnight for 50 cents.
This morning members sold them at 92% to 174% gains.
The Strait of Hormuz opened this morning. The Dow ripped 900 points. The news was everywhere.
And at Option Pit, we were closing trades everywhere else too. Special situations, Project M.N.S, Wiretaps, Delta Strike, Capital Gains. The wins channel in our Slack was moving faster than I could read it.
None of that happened because we got lucky.
Here is what Licia actually saw.
Bitcoin had been building for days alongside ceasefire optimism. The chart on IBIT was pointing toward continuation.
Because the calls she bought expire in one day, the premium was almost nothing.
She was not paying for weeks of time value. One overnight move on a setup she already liked.
Without the news, I estimated she would have made around 30%. The chart was already working in her direction.
The Strait of Hormuz opening did not create the trade. It added fuel to one that was already lit.
That is a working framework.
Find a setup where you see strength, check whether the options are cheap relative to the move you expect, and if both answers are yes, the trade has positive expected value before any news hits.
When the news does hit, it is the last slice on top of something that was already working.
Today at 2 PM Eastern, Licia and I are doing our final free session of this series. Between yesterday and today, we closed a 114% winner in SPX and a nearly 100% winner in Project M.N.S.
If you want to see how she approaches a trade, prices the option, and manages it when the market moves, today is the last chance to watch it live at no cost.
Your Only Option,
Mark Sebastian