Think about your favorite rollercoaster you went on as a kid. You sit down and strap in, and the coaster slowly starts going up. You’re building momentum, you can see all the other kids walking around the park as you go higher. You reach the peak – and then you start speeding down. And that kind of momentum carries you back up the next hill, and the next hill, and the next one. Now, think about volatility – what determines the price of options – as that same rollercoaster. But instead of getting your picture taken, you close out winning trades. See, right now we’re building momentum in the market. Quadruple Witching last week and JP Morgan’s quarterly collar trade are pushing option volume higher and higher. But just like that coaster, it’s all going to start speeding downwards – right before the Fourth of July. My plan is to buy several large-cap stocks for dirt cheap when we bottom out, then sell them once volatility bounces back up to normal. I employed this same strategy before Christmas, and I won six of my seven trades: And today, I’m asking you to sit down, strap in, and take this ride with me. I’ll be live tomorrow at 12:30 ET – you in? |