The Market Maker Signal You Can Actually Use
(a.k.a. How pros catch a quick more without guessing)
On yesterday's Profit Panel, the team highlighted a simple edge most traders miss: rising implied volatility.
Implied volatility (IV) is the market's guess about how much a stock might swing, baked into option prices.
When option makers start lifting IV, they're bracing for a bigger move. If you spot that turn early, your option can get a double boost — from price and from IV going up.
A simple way to use it (no special tools required)
Think “small, quick, and capped risk.” Here's the plain-English checklist:
1. Pick calm first. Choose a stock that has been quiet lately (no big spikes) and is trending up on the daily chart. If it's a mess, skip it.
2. Look for IV to “wake up.” On your option chain you'll see IV. If it was low and now starts ticking up for a day or two, that's your “heads-up.” (Rising IV = traders are paying more for movement.)
3. Use a small call spread. Buy one call and sell a higher call in the same week or next (about 7–14 days out). This keeps cost and risk small. Example idea: buy the $100 call, sell the $105 call.
4. Keep it tiny. One spread is enough. With this trade, your max loss is what you pay to get into it.
5. Give it a few days. If price pops and your spread is up 30–50%, take the win. If nothing happens after 3–5 days, or IV stops rising, exit and move on.
That's it. You are not guessing the news. You're letting IV tell you when the market expects a bigger swing — and you're keeping risk capped while you wait.
Quick hits from the rest of the show
- UPS income trade (live fill): a ratio/put combo taken for credit with clear “own it lower” math.
- Eli Lilly (LLY): a calm 630/640 bull-call idea after an overreaction.
- VIX near the lows: good for buy-the-dip moods, but a quick snap-back wouldn't shock anyone.
- Small-caps: IWM showed fresh strength on pullbacks.
Takeaway
You don't have to predict a headline. When IV lifts from low levels, the market is often flashing “brace for movement.” Keep trades small, keep risk capped, and take the quick win when you have it.
Want to see the charts and examples we used on the show?
To your prosperity,
The ProsperityPub Team
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