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Join Chris at noon ET TODAY to see the exact trade he’s placing at 11:59 a.m. on Monday — what he hopes will be a 25th straight win! Why Timing Entries When Implied Volatility Is High Is Everything In today’s market, timing is everything — especially in an environment where implied volatility can shift dramatically from the opening to the closing bell. When we see high implied volatility right at the open, it’s tempting to jump in and ride the wave. But the truth is, real market strength takes time to settle in, and a smart trader knows when to sit tight, let the market cool off, and avoid the trap of overextending. For example, one recent morning, several stocks with high volume opened strong, leading some traders to jump in without hesitation. In a market that’s consolidating — or as I like to say, “digesting” the recent gains — quick moves aren’t always the best approach. Many of these stocks opened high but actually started dipping as the day wore on, confirming why taking profits on the opening pop can be such a powerful strategy. This particular morning, the key movers were Cisco (CSCO), Boeing (BA) and Pfizer (PFE). All three opened strong, boosted by sector trends and initial bullish sentiment. But by midday, these same stocks had lost their early momentum, proving that holding off — or better yet, taking profits right after the open — can pay off in a big way when implied volatility is high. Each stock ended lower than its morning peak, giving a clear signal that waiting for a pullback often sets us up for a better entry point. For those of us focused on technicals, watching levels like the 8-day exponential moving average can provide even more clarity on timing our trades. Stocks often need to "consolidate" their gains, so when we see heavy buying right at the open, it’s wise to let those prices come down a bit and find balance. Remember, trading isn’t just about capturing the action — it’s about knowing when the action has set up the ideal environment for the next move. As I often say, the market has to “digest” what it’s been fed, and we’re seeing that in real-time today. When FOMC announcements and other major events are on the table, the market will naturally move up and down, creating fresh opportunities for those of us who are patient. Patience isn’t just a virtue in trading… It’s a strategy. By waiting for these pullbacks and keeping an eye on technical levels, we’re able to align our trades with more sustainable market trends rather than getting caught up in the volatility at the open. So as you watch the next morning’s high-fliers, remember: A little patience can go a long way in ensuring you’re entering on solid ground. I hope that helps!_________________________________________________ You See This Pink Line? What you're looking at is the reason why we've been on a hot streak since July… In fact, we haven’t lost a single trade yet — 18 winners and ZERO losers! It’s a unique pattern that doesn't require you to stare at charts for hours... Neither do you need to bet on earnings reports... Or chase news headlines. All you have to do is wait for the daily candle to close below the indicator… Open a trade the very next morning… Just like I did with Bath & Body Works Inc (BBWI) back on Aug. 1… Anyone who followed along could’ve come back to… A mind-melting 82% return in one day! Now, there were smaller wins, and I can’t promise that this pattern will stay undefeated forever but… Like I said above, we’ve gone 18 for 18 on real trades since the strategy’s official inception in July… And I truly believe that it’s the best way to isolate meaningful wins in both good times and bad! Just Follow This LInk to Check It Out!P.S. This is the exact pattern I prefer to teach to our employees, because It doesn’t require them to be glued to the markets all day. *The profits and performance shown are not typical, we make no future earnings claims, and you may lose money. From 7/15/2024 through 11/6/24, the average win rate on live, published trade alerts is 100%. The average return on options trades was 27.82% over a 3.83-day average hold time.Follow along and join the conversation for real-time analysis, trade ideas, market insights and more! Telegram:https://t.me/+_vmfwkeP8fA5YWQ5 *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.Join the Conversation Give us a follow on your social media platform of choice, and make your voice heard! |
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