"Once I close for a massive gain, I always check myself to avoid getting greedy and giving it all back on the next trade." Nate Bear, Lead Technical Tactician, Monument Traders Alliance Editor's Note: Last week, we had a fantastic session with Jon Najarian and Senior Analyst Chris Johnson, and this week Jon is coming back for another event with our own Nate Bear and Ryan Fitzwater. This free masterclass is a unique opportunity to get FREE trade ideas and perspectives from both a member of the Options Trading Hall of Fame and every day trader who grew his wealth from his home office. It starts on Wednesday, Jan. 28 at 2 p.m. ET in the MTALive chatroom. Click here sign up today. - Stephen Prior, Publisher
Last week was a week. Between the Greenland situation and the WEF meeting, I was feeling decision fatigue on Friday. As a trader, when mental power starts slowing down, you have to keep your wits. Patience becomes key. And one of the lotto setups I was waiting on was Carvana (CVNA). The chart looked incredible. It was nearing all-time highs at $485 with an A+ squeeze. Given this momentum potential, I took out a lotto trade and 1 butterfly trade targeting $500 on Thursday. I paid .39 for this butterfly trade on CVNA. By the end of the trading day, it was closing at $2.13. So I closed the first lotto for a 400% gain, but I wasn't done yet. Although the lotto was closed, I held on to the butterfly trade for a few reasons… One, I thought CVNA had more room to run. Two, given that CVNA options were super cheap the next day, I could capture that continued momentum without as much risk. All I needed was a little push into all-time highs. So I added to the lotto on Friday. Then in less than 1 hour, that momentum shift came. CVNA moved up into all-time highs, and I closed the lotto trade for a 370% winner. All together – we captured nearly a 1000% gain on CVNA – all in less than 2 trading days. Freaking awesome. That's the power of using patience and building on a lotto trade for a massive gain. The one thing I caution traders is once you capture that massive gain – there's a temptation to get back in on a quick dip and try to ride it for more. Don't do it. I can't tell you the number of times I've made a big gain on an options trade only to give it all back by thinking it'll keep going higher. Once I get the move into all-time highs, I close the trade and avoid trading that name for the rest of the day (usually). Here's what a few Daily Profits Live members had to say about the trade. Carvana has the potential to keep running, so I'll be looking to position via spreads in this week and next week in Daily Profits Live. | 
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