| 9 Trades to Take Advantage of the Volatility
The markets have been extremely volatile over the last few weeks…
October is always a volatile month, but this year the volatility kicked in early.
And the abnormally large moves we've seen lately give traders more opportunities to make more money, regardless of whether stocks move higher or lower.
Personally, I like the extra volatility. It means we're in a "trader's market."
But not everyone loves the price action we've seen lately. Especially the dip in most U.S. stocks in recent weeks. The S&P 500, which tracks 500 of the largest U.S. companies, is down about 5% over the past month.
That's why I want to share with you my favorite strategy for making money no matter which direction the market moves.
And the best part is, you don't need to become a day trader to take advantage of it — you'll only enter and exit positions once a month.
Each month, members of my Monthly Money Flows service enter nine positions, six long and three short positions. I specifically look to go long on stocks that are getting bid up by big-money, institutional investors.
If you're part of my Monthly Money Flows service, then you already know how easy it is to profit when market conditions are favorable and stocks are trending up.
The only downside is, sometimes the market can throw us a curveball. Or a bad headline can tank one of our monthly picks.
So to protect us in the event of this possibility, as part of my Money Flow Elite service, I add a bearish trade from each major U.S. index. That means members will get three bearish trades a month alongside six long trades.
As we've seen, there will be moments where the market trends down.
And the more tools you have at your disposal — learning how to trade from the short side, how to buy puts and make money when stocks are sinking — not only ensures that your portfolio is protected, but that you're able to make money in all market environments.
You're not wasting valuable time sitting on the sidelines, waiting for conditions to improve.
You're in the thick of it, still making money.
In other words, we want to be long strong stocks with strong institutional support… and short stocks being sold by institutional investors. In my experience, those are the stocks most likely to head lower in the short term.
Having hedged positions ensures that our portfolio has the potential to make money, regardless of the conditions in the market.
To see this strategy in action, just take a look at one of our trades from last month, Cabot Oil & Gas Corp. (NYSE: COG).
While most indices were down a bit in September, we cashed in big time on Cabot Oil.
Money Flow Elite members are up about 25% on the common stock, and a staggering 400% on the options.
When we got into Cabot Oil at the beginning of the month, it was already the second best performer in the S&P 500.
A lot of investors probably assumed the company already had its run up. But all the signs indicated that this company was poised to move even higher…
Oil was inching back above $70 a barrel, and the stock was still cheap, just $19 a share.
In 2019, which was the last time oil was even above $65, COG was at $26 a share.
Just take a look at the following chart. As you can see COG was lagging behind oil (the blue line). | 
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