Editor’s Note: In addition to spending years facilitating Big Money stock trades, I also spent years as Head of North American Equity Derivatives for Cantor Fitzgerald. Derivatives is a fancy word for investments that “derive” their value from something else. The most intriguing and popular derivative investments are options. They can also be the most controversial. I saw firsthand both the power and the risk of options, and you won’t be surprised to learn that I developed a system for profitably trading them in relatively low-risk fashion. Some of you have asked whether I will one day recommend options, and I am considering that possibility. In the meantime, I want to introduce you to a colleague with a similar background who has developed a cool system for short-term options trades. Jonathan Rose worked on the floor of the Chicago Board Options Exchange, and also helped institutional investors execute their trades. I’ve invited him to Power Trends today to tell us about his new system, which he’ll be unveiling next Tuesday, Nov. 26, at The One-Day Winners LIVE Summit. Jonathan will reveal his entire five-step strategy and show you how to execute your first trade. As you can tell from the summit’s name, these are incredibly fast trades of anywhere from zero to three days. Zero? Yes, as in trades lasting only a few hours. It won’t be for everybody, but his reliance on data, his systematic approach, and his emphasis on tracking Big Money definitely caught my attention, and I knew you would be interested in learning more about it. Be sure to check out this unique event. You can reserve your spot here. And here’s Jonathan with more… |
These 24-Hour Stock Plays Aren’t on Anyone’s Radar The biggest money-making opportunities in the stock market often happen when investors’ backs are turned. In fact, they come so fast – and are so under-the-radar – that they’re usually gone before everyday folks even know they exist. Right now, I see another opportunity brewing in the stock market that’s unlike anything else I’ve ever seen… I should know. When I worked on the floor of the Chicago Board Options Exchange (CBOE), my job was similar to what Jason did. I helped institutional investors execute the kind of market-making options plays that drive generational wealth for only a select few. And I helped those same investors capitalize on a singular market phenomenon that sparked a whole earnings spree on the Street. Back in March 2020 – right as the COVID-19 pandemic kicked into high gear and sparked a market wide panic – the smart money was placing all of its bets on volatility. In a single day, the Dow Jones Industrial Average fell 2,997 points. In a testament to just how unpredictable the markets were, that same index managed to gain over 2,000 points just a few days later. I was on the floor right in the middle of it all. It was pure insanity… And for institutional traders, it was extremely lucrative. Among the CBOE Global Markets' four options exchanges, nearly 12 million contracts traded hands per day as the markets seesawed throughout March. The smart money absolutely had the market cornered on quick options plays that yielded double- and triple-digit gainers inless than 72 hours… and often in just under 24 – all without holding trades for days or weeks. Back then, this type of short-volatility options trading made up only about 17% of the total volume on the market. But it’s a very different story in 2024… Today, these quick options trades make up nearly half of the daily volume of S&P 500 index options. And we shouldn’t expect this market phenomenon to run out of steam any time soon. With the election behind us… an abundance of fiscal stimulus flooding the global economy… and a stock market looking for higher highs from here, the opportunity for options traders is clear. Short-term volatility trades like these can help us capture gains that are rarely possible with regular stocks. And while the smart money has maintained a stranglehold on this powerful tool for years… I’m here to tell you that you too can harness extremely short-term options to trade just like institutional investors – all while limiting your exposure to risk and maximizing your potential for gains. The Power of Short-Term Volatility Trading Committing your capital in the morning and taking a massive gain before the end of the day… That’s the promise of what elite traders refer to as 0DTE options. In simple terms, an 0DTE trade – which stands for zero days to expiration – means that if you buy an option today, it expires by the end of the trading session, making it perfect for profiting from intraday price movements. Additionally, there are options that expire within one to three days – known as 1DTE, 2DTE, or 3DTE options – giving you a slightly longer window to execute your trades while lowering your exposure to risk. By hedging your short-term risk and piling into trades at the right time, you can find some of the most powerful opportunities for gains in the stock market. Consider this… When the Nasdaq popped 2% back on Sept. 19, you could have made 344%, 1,402%, or even 1,788% and more with this kind of trade. With those kinds of gains, you could have turned a $500 stake into $2,220, $7,510 or $9,440 – all in just a few hours. Extremely short-term options trades provide us the tools to maximize our potential gains like no single stock play can. And as I mentioned, these powerful tools have been hiding in plain sight for years. So right now, I’m sure there’s one question you’re asking yourself… How do I discover these short-term options plays in the first place? Where the Smart Money Treads To harness the power of short-volatility trading, we have to think like institutional investors do. Jason and I both like to track Big Money flows, and that also means using the same tools at their disposal. The reality is, the smart money relies on a whole series of indicators that help predict the weather in the stock market, so to speak… And they’re the sorts of tools that I regularly track to bring powerful recommendations to my own readers. For options traders, looking for unusual moves in the market is essential. So we keep an eye on the major volatility indicators out there, especially the 1-day (VIX1D) and 9-day (VIX9D) indices… The VIN and VIF provide a broader view of how volatility might shift in the longer term as well. We subscribe to a simple rule here… If short-term volatility is rising while longer-term volatility remains low, this usually signifies a short-lived but significant spike in volatility. That’s typically what we need to see to execute the perfect short-term trade. Of course, it’s not enough to just study a few indices and charts. In extremely short-term volatility options trading, education always mitigates risk. Everything I’ve told you about single- and multi-day options trading will provide the foundation for you to start dipping your toes into the possibilities of short-term volatility setups. But I want us all to dig a little deeper… To truly understand how powerful these options plays are, we need to understand how to trade volatility rather than direction. That means developing a mindset for consistently spotting where the best opportunities for these trades exist in the markets. And I want to help anyone reading this article do exactly that… That’s why I’ve put together a special presentation that will help you identify the best opportunities for quick options plays on the market. Using the system I’ve developed, you’ll not only discover the key to quick, consistent gains trading options… You’ll also understand how trading pros protect their portfolios from market uncertainty by adding upside and downside coverage that allows them to stay nimble whatever the markets throw at them. With The One-Day Winners LIVE Summit, you’ll get a clearer picture of how volatility shapes the options market, and you’ll gain the depth of understanding necessary to execute creative trades based on all the criteria I’ve outlined above. This is a rare opportunity to learn about a whole approach to options that is driving millions of dollars in trading volume. There’s no reason you should miss out on this market phenomenon. I’m hosting The One-Day Winners LIVE Summit on Nov. 26 to go over all of this in more detail. I want to make sure anyone who’s interested has a chance to gain the knowledge to beat the smart money at its own game. The summit is completely free to attend. All you have to do is click here to reserve your spot and mark your calendar for 11 a.m. Eastern on Tuesday. Remember, the creative trader wins. Jonathan Rose Founder, Masters in Trading
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