Hedge Against Short-Term Risks and Rake in Eye-Popping Gains All at Once Editor’s Note: For those of you even remotely interested in options trading, you should know that the new zero days to expiration (0DTE) market has really taken off. Within two years, zero-day options have gotten to around $1 trillion a day in trading volume, according to JPMorgan Chase.
And when we start seeing a lot of money flow into a specific corner of the market – that really piques our interest. Because these areas tend to be where you find the most dramatic gains.
For example, in the research Jonathan Rose is preparing for his upcoming presentation, he’ll show you how you could’ve used these trades to TRIPLE your money from Donald Trump’s election victory… in less than seven hours.
When it comes to options, Jonathan is our resident master of money flows. His 25-plus-year career trajectory, from floor trader to CBOE market maker to trading mentor, is a testament to the power of understanding these flows – including winners of 126%, 245%, even 463% or more, often in 30 days or less.
And starting Saturday, Nov. 23, Jonathan will host his urgent summit on this brand-new money-making strategy. And this event is completely free to attend. (Click here now to reserve your spot!)
Needless to say, there’s no one else I’d rather have you hear from when it comes to the exploding market for zero-day options. So, without further ado, take it away, Jonathan… It’s amazing what a trader can do with a straightforward fundamental market outlook, and the leverage we get from trading options. I would know, I was a professional trader for more than 16 years. I traded in the pits on some of the biggest exchanges in the world like the Chicago Mercantile Exchange and the Chicago Board Options Exchange. Over the course of my career, I’ve come to find that if you can combine these tools into a comprehensive system – just as Luke has done with his own breakout trading system – then odds are good you are lightyears ahead of most folks out there. In trading, it’s critical to have a fundamental idea of how the market is performing to help shape our positions. That’s why members of my Masters in Trading program and I have been watching the action in the Invesco QQQ Trust (QQQ) under a microscope. This ETF is based on the Nasdaq-100 Index, which includes the 100 largest nonfinancial companies on that exchange. By looking over recent history in the charts, we begin to see patterns of behavior we can use to our advantage. Finding the “Line in the Sand” What’s so important about the QQQ? Well, the biggest drivers in the market are the so-called “Magnificent Seven” stocks: Microsoft Corp. (MSFT), Apple Inc. (AAPL), Alphabet Inc. (GOOG), Meta Platforms (META), Nvidia Corp. (NVDA), Tesla Inc. (TSLA) and Amazon.com Inc. (AMZN). All these companies trade on the Nasdaq, so the QQQ is one highly valuable chart I like to keep a close eye on. Part of how I like to monitor the market’s performance is looking for the current critical level — what I like to call my “Line in the Sand.” This can be either a level of support or resistance depending on how markets are trending in relation to that line. This is a fantastic concept to help us simplify our fundamental view of the market… If we’re trading above the line, we’re in a bullish trend, and if we’re below that line, we consider that to be bearish. In our daily Masters in Trading: Live sessions at 11 a.m. Eastern, we’ve been keeping a close eye on the QQQ, especially around the $500 level — which I’m calling the current “line in the sand.” Take a look at the daily chart below. The $500 mark is standing out as a critical level right now. After QQQ hit a high just above $515, it pulled back, but it’s consistently found support right around that $500 area. This isn’t just a coincidence — it’s where buyers and sellers are battling it out, making it the key level to watch. Why does this matter? Because levels like this often act as a launchpad for the next big move. If QQQ holds above $500, we could see another push higher. But if it breaks below, we could be looking at some serious downside action. Either way, this is where opportunity lives, and this is why we trade short-term options like 3DTE, 2DTE, and even 0DTE — to move fast and capitalize on these shifts. We’ve seen this play out before. Earlier this year, during a similar setup, I highlighted a key level in our live class. Members positioned themselves using short-term puts ahead of a market pullback, and when the QQQ dropped 2.4%, our model portfolio saw gains as high as 179.9% overnight. This is what it’s all about — being prepared, staying disciplined, and taking advantage of these moments. Be Adaptable, Be Objective A solid fundamental understanding of the market, the strategic use of options, and disciplined risk management forms the cornerstone of successful trading. My career on the front lines of the exchanges has shown that these principles, when applied systematically, can offer major advantages, even in volatile markets. These trades came together because of the time we had spent working on our systematic approach. We understood that the markets were in a bullish trend, and we knew how to manage a portfolio that might be out of balance relative to market support. That knowledge allowed us to protect our portfolio ahead of potential volatility from a key market catalyst. As we navigate the complexities of the financial world, remember that adaptability and objective market indicators, like our ‘Line in the Sand’, remain essential. This is just one of the tools I use to inform my trading, which is why I invite you to join me at my One-Day Winners Live Summit on Tuesday, Nov. 26, at 11 a.m. Eastern. At the summit, I will dive deeper into this money-making strategy to capitalize on volatile markets using short-term trades. It’s free to attend, and you can sign up here to reserve your spot. It’s critical for every trader to always be learning and keep an open mind to evolving strategies. This type of mindset keeps us creative and helps ensure you’re always in position to capitalize on market opportunities as they arise… And as I like to say, the creative trader always wins. Sincerely, |
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